The Reserve Bank of Australia (RBA) cut the official cash rate by 25 basis points to 4.25% at its December meeting on Tuesday.
If you enjoy the content at iBankCoin, please follow us on Twitter
© Copyright 2007-2024 iBankCoin All rights reserved under penalty of bodily harm. DISCLAIMER: This is a personal web site, reflecting the opinions of its author(s). It is not a production of my employer, and it is unaffiliated with any FINRA broker/dealer. Statements on this site do not represent the views or policies of anyone other than myself. The information on this site is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities. DATA INFORMATION IS PROVIDED TO THE USERS "AS IS." NEITHER iBankCoin, NOR ITS AFFILIATES, NOR ANY THIRD PARTY DATA PROVIDER MAKE ANY EXPRESS OR IMPLIED WARRANTIES OF ANY KIND REGARDING THE DATA INFORMATION, INCLUDING, WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. Privacy Policy
Is that good or bad for stocks?
I’ll go with generally good, eventually. The world is turning towards looser monetary conditions… including
-UK announced QE
-ECB has been running an unannounced QE
-Japan has been running a bit of fiscal stimulus
-China jjust announced a whopping $1.5T stimulus to be released over a few years
rate cuts here and there…
en masse these moves should have some meaningful impact on markets. China’s stimulus will likely keep a bid under various commodities for a while to come, all the various “QE’s” should have a QE-ish effect, and so forth.
I would guess the repubs win in 2012 (oval office and perhaps the senate as well)… and I’d guess they know that their banter and antics recently is destructive to the American economy… So I’d guess that they will announce a form of fiscal stimulus shortly after winning, probably in the form of a tax cut, hopefully that then being the payroll tax. Because that would get cash to the people who need it most.
And not to confuse various and very passionate complaints to the contrary, but the US cannot fail to be able to afford social security down the road, it does not need to be funded today. Again, inflation is the solitary talking point when discussing cumulative US gov’t deficits, never solvency.
IMO, a bad signal. If markets were healthy, rate cuts would not be necessary.
stocks fell today, and they just continued to fall after the cut was announced.
not even a bump up.