The RBA has cut rates to 0.75. This was expected by everyone bar a very few.
What does this mean. Well it means the economy is doing so well the RBA wants to cut rates to cool the economy
The AUD has been hammered and sunk to 67.13c/usd at time of posting.
Most people are tipping the aud to fall further over the next year or so.
So all the money you have in the banks has now been devalued again and every time the RBA cuts rates the aud will get devalued.
That is unless some organisation oh let me take a guess like G.S. and or the RBA wants it higher although I doubt the RBA wants it higher and has said in the past it would like to see the AUD lower. Lower aud may be good for exporters so long as they dont have to buy any inputs materials from foreign based companies particularly those in the US.
The AUD over the last few years or perhaps 10 years has gone from 110/usd to now 67/usd a massive devaluation of our currency. Given that most things in Australia are imported this will not help the households in Australia.
Lets see who if anybody takes the aud back up????
