Lowest interest rates since 1959?

[catsnknots]

Is that true??? 

And what was the drama that caused it to go that low? 

Swannie says you can congratulate him.... that this is a good thing and think of all the money you can save on your home loan... 

Well I heard that the statistics for home loans showed that the majority of people don't have one... tried looking for statistics to compare but was not lucky... might try again later... 

To me it seems that a small percentage will be better off but in reality a lot of people that are self funded in retirement are worse off... and that this will actually push them onto the Government Pension as their income is reduced... 

These interest rates cuts are because the economy is on a downturn... things are not looking good... 

And Swan wants to tell us all things are ok???? 

[twinkles**stars]

our interest rates are still high compared with some other countries

[catsnknots]

Twinks, we are not other countries.... we were pretty insulated from the GFC. We still had good terms of trade with China and or mines were still booming... 

The situation we are in is slightly due to the GFC but we are not comparable to America, Greece, Spain and any other country that has 0 to 1% interest rates... 

I get really tired of hearing that comparison. 

What we have now is more complex. Swan was warned of this several years ago... 

Fix our manufacturing industry... Fix what they did to what was a very profitable live cattle export.... Fix what they did to the mining industry.... remove the CO2 tax that has pushed up prices of many goods.... 

But they don't know how to fix it... 

[lakeland27]

historically low interest rates. ' interest rates will always be lower under a colition government'

so much for that. howard boasted about it , but swan achieved it.

if manufacturing and other exports are a problem its because of the high dollar and high wages.

we simply cannot compete.. governments cannot control the dollar.

thats why miners had to pay (but managed to wriggle out by gold -plating)

the hard times ahead won't be of Swans making , but austerity an article of faith from the right will bring them forward, despite that approach not working anywhere else.

[lakeland27]

as for the self-funded you mention, reliance on the stock market for income is a gamble. just as buying a house at low interest only to have rates creep up is.

[purple.cow]

Bring back high interest rates.

10% minimum.

Good for me, stuff everyone else :^O

[lakeland27]

see ? it only helps the likes of moomo :^O

[catsnknots]

I think interest rates of 5 - 7% are good... 

I don't even think that John Howard would agree that these lowest of low interest rates are good for anyone. 

It is meant to encourage the first home buyer into the market but they will not buy when times are so hard for so many people. 

LL are you saying that Swan is good and that he is responsible for these interest rates and that he is doing a fantastic job? 

[lakeland27]

I think interest rates of 5 - 7% are good... 

I don't even think that John Howard would agree that these lowest of low interest rates are good for anyone. 

It is meant to encourage the first home buyer into the market but they will not buy when times are so hard for so many people. 

LL are you saying that Swan is good and that he is responsible for these interest rates and that he is doing a fantastic job? 

he's done a fine job, its just that you have to go o'seas to read about it.

the low interest boast is howards. he's been proven wrong. he never had a AAA credit rating from all the major agencies either.

[punch*drunk]

Is it the official rate thats at its lowest, or the bank rates? Seems to me like the banks pass on less and less of the cut each time it goes down.

When I bought my first house, we had a honeymoon rate that was less than 5%. I think the standard variable is still a bit higher now than it was then.