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Rate cut.. So what ?

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Big_Bucks
Super Contributor
Being in business myself,I still can't understand how a.25 or even a .5 % rate cut does anything to boost business especially if it is failing. Perhaps it helps a bit with cash flow on leased equipment but that's about all. Once the US sees that nothing's going to change we all fall down. OMO
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7 REPLIES 7
SimonPB
Valued Contributor
because money becomes cheaper so vorrowing increases and hence business can borrow and expand.
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Not applicable
if you look at the bigger picture 0.5% of say 1 trillion is still a large chunck of extra cash flowing about in the economy.
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Not applicable
an the US economy is 70% about the consumer.....this puts a couple of 100 bucks per month back in the pockets of consumers...
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saash
Super Contributor
The general public has more disposable income to buy things. The business increases turnover. The business pays less on business finance and premises bonds. The business has more cash for growth. After a year everyone is better off than they were. Or so it should be.
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Ega
Super Contributor
The lower rate will mean a slight slower repossession rate of defaulting home owners, their major asset. Might be able to keep their heads above water a tad longer. OMO :)
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Champ_golfer
Frequent Contributor
YES But uncle TITO will spoil the party tomorrow afternoon byhiking SA Interest rates by .5% Expect nice wave up from 9 to 2 then wave down towards close of play
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Champ_golfer
Frequent Contributor
YES But uncle TITO will spoil the party tomorrow afternoon byhiking SA Interest rates by .5% Expect nice wave up from 9 to 2 then wave down towards close of play
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