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Breaking: Major banks respond following RBA decision to cut interest rates (www.abc.net.au)

submitted 2 weeks ago by [email protected] to c/[email protected]

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[–] [email protected] 1 points 2 weeks ago (1 children)

They did it because everyone else did the same and they wanted to look like they were doing something. Jacking up rates only works when the thing going up is discretionary spending instead of essentials.

[–] [email protected] 1 points 2 weeks ago* (last edited 2 weeks ago) (1 children)

Jacking up rates only works when the thing going up is discretionary spending instead of essentials.

Which it was.

[–] [email protected] 1 points 2 weeks ago (1 children)

The things going up were food, energy and housing. Those are all inelastic goods.

[–] [email protected] 1 points 2 weeks ago

Definitely not the only things that were going up.