# Thread: The Reserve Bank has again cut lending rates

1. ## The Reserve Bank has again cut lending rates

Another 100 basis points.

2. yay!

3. Why don't they just say 1%?

4. Damn.

Yes, yes, I know it's good for all of you with debt/bonds. But it's not good for those of us with money in the bank!

5. Originally Posted by Waaib
Why don't they just say 1%?
100 sounds better than 1!
Good news yay!!!

6. Originally Posted by Waaib
Why don't they just say 1%?
it's their way of being fancy shmancy!

7. What did it go down to and then up to and what is it on now?

Basically if people bought a house and were able to afford the repayments before it went up they've been having a hard time. How close is it to when it was at its lowest?

8. Originally Posted by Garyvdh
it's their way of being fancy shmancy!
Actually...

If the rate is, say, 12%, and they say it's come down by 1%, it would techically mean it had come down by 1% of 12, which would mean it's 11.88%. So they can either say it's come down 100 basis points, which is the fancy shmancy financial term, or they can say it's come down by 1 percentage point, which is not the same as 1%.

9. Prime at it's lowest point in the previous cycle was 10.5%, then increased to 15.5% and is after today's cut 13%. They will cut is further during the rest of the year. Some say another 1% at the end of April.

10. 1% to means 1% off the rate, you got all confuzzled there for a second cath

11. Originally Posted by CathJ
Actually...

If the rate is, say, 12%, and they say it's come down by 1%, it would techically mean it had come down by 1% of 12, which would mean it's 11.88%. So they can either say it's come down 100 basis points, which is the fancy shmancy financial term, or they can say it's come down by 1 percentage point, which is not the same as 1%.
Jip, agreed

12. Does anyone have a table calculating the actual monthly saving on a bond?

Thanks

13. Originally Posted by blunomore
Another 100 basis points.
and?

14. Originally Posted by subculture
and?
yes.

15. Originally Posted by blunomore
Does anyone have a table calculating the actual monthly saving on a bond?

Thanks
Here a nice visual graph:

http://www.fin24.com/tools/Calculators.aspx?Calc=Home

Cheers
Paul

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