100 Basis Points
October 7, 2008And in another indication that the Global Economy is in dire straits, the Reserve Bank has cut interest rates by 100 basis points (that’s 1%). Which is just lovely for mortgage holders (like me), but it’s important to remember that the RBA’s actions are directed more towards jittery Stockmarkets than the little people. The Stockmarkets have always been driven by fear and greed - it’s one of the reasons I’m a subscriber to the Warren Buffet philosophy of investing.
Thank goodness I assumed interest rates would go as high as 15% when I took out a mortgage (that’s about $2000 a month for me) four years ago. People thought I was stupid when I made that assumption. But considering developments over the last 18 months, it doesn’t seem so silly now, does it?
