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Speaker 1: So the Reserve Bank did the predictable thing today and

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Speaker 1: cut twenty five basis points. Good news for mortgage holders,

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Speaker 1: good news for the economy, more money in our pockets

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Speaker 1: and more money to spend. Of course, it's not going

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Speaker 1: to change the world. It's a quarter of a percent

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Speaker 1: on a wholesale rate, and a wholesale rate is only

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Speaker 1: a portion of the bank's rate, and the bank's rate

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Speaker 1: only matters if you haven't already fixed, and as of

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Speaker 1: five minutes ago, the banks haven't budged on fixed rates,

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Speaker 1: only on floating. The bank's swap rates are probably more

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Speaker 1: important here and at the moment. We'll get more on

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Speaker 1: that later in the program, but for now, it is

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Speaker 1: the general direction of rates that we like. The sound

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Speaker 1: of this is good. Loosening lowering the direction of travel,

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Speaker 1: to steal a term from Descinda Adern is good. Our

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Speaker 1: disposable income is going up great. But of course the

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Speaker 1: question then becomes, will we actually spend it? Are we

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Speaker 1: now so worried about trigger happy Trump and as tariffs

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Speaker 1: that we don't go and get the new couch, or

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Speaker 1: we don't upgrade the car, not that it should be

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Speaker 1: a tesla or an iconic anyway, or maybe we don't

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Speaker 1: go and get the kids back into ballet class because

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Speaker 1: the subs were too expensive during the cost of living crisis.

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Speaker 1: The answer to that question is at this point, we

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Speaker 1: actually just don't know because we haven't had any confidence

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Speaker 1: surveys for the past week. But if Trump doesn't start

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Speaker 1: doing deals soon, then my bet is people will start

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Speaker 1: pulling back a bit, maybe not all the way, but

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Speaker 1: enough to slow an economic recovery down. Just talk to

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Speaker 1: your friends and your family and ask them how they're

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Speaker 1: feeling about things at the moment. So there's reason to

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Speaker 1: be wary, but one mustn't be ungrateful when inflation is beat,

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Speaker 1: the government's talking about growth a budget surplus rather than

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Speaker 1: more borrowing. You've got to take the wins when you

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Speaker 1: get them, no matter how small, teeny tiny they may be.

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Speaker 1: For more from Heather Duplessy Allen Drive, listen live to

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Speaker 1: news talks. It'd be from four pm weekdays, or follow

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Speaker 1: the podcast on iHeartRadio.