Finance News

From the monthly archives: June 2019

We are pleased to present below all posts archived in 'June 2019'. If you still can't find what you are looking for, try using the search box.

The rate cut we had to have

Posted on Tuesday, June 11, 2019
Last week’s interest rate cut was the cut we had to have.   And in my opinion it’ll be the first of two this year, with the second coming either in August or October.   The cut should flow through to your accounts towards the end of the month, with each of the Big Four cutting their variable rates in some capacity.   Westpac and ANZ failed to pass on the full cut this time, though I expect that they’ll even out when that second cut comes later in the year.   The result of the cut – along with the Coalition’s election victory consigning changes to negative gearing and franking credits to the dustbin of history – is that the economy is feeling a bit more positive.   This should lead to business feeling a little wealthier and the advantage of that for small business is the opportunity to take advantage of the government’s $30,000 instant asset write-off scheme, so we should see a spike in spending between now and June 30.   The f ... Read the rest of entry »

The RBA is almost certain to cut rates tomorrow

Posted on Monday, June 3, 2019

An interest rate cut is what we need and tomorrow I think we will get it.

I have predicted correctly since August 2016 when I predicted the cut, and tomorrow I am predicting another one.

Weak inflation data is certainly a factor, but unemployment rising to 5.2% was the final straw.

My retail clients are doing it tough, with high rents and another increase to the minimum wage next month, adding to the election campaign consumer spending freeze.

The Reject Shop is an example. Last week they announced more store closures, reduced profit and the CEO's resignation.

If you’re a dollar watcher it may drop to 68 US cents, however the cut has been priced into the AUD as it has the share market.

The Reserve Bank meets tomorrow. Watch this space.

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