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Speaker 1: It feels like I said every time these days, but

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Speaker 1: the ocr call today is as important as any given

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Speaker 1: the state of this economy of ours. Most banks want fifty,

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Speaker 1: if not seventy five. Ki Bank got a headline yesterday

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Speaker 1: by cutting big on their floating rate and anticipation at

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Speaker 1: Kiev Bank CEO Steve Byukovich's bag with a Steve very

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Speaker 1: good morning to you. Somebody said it was pure headlines

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Speaker 1: on your part? Was it pure headlines, Steve?

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Speaker 2: Well, I mean, obviously, what we're trying to do is

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Speaker 2: create enough momentum that others will follow. So you know,

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Speaker 2: I did read that headline and had a bit of

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Speaker 2: a chuckle to be fair, because ultimately, marketing and branding

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Speaker 2: is about doing what you are about, and for us,

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Speaker 2: that was trying to social leadership about a cup.

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Speaker 1: Would you be astonished if you went twenty five today, I'll.

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Speaker 2: Be really disappointed. I think people, real businesses and our

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Speaker 2: customers are really really hoping for fifty, and you know

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Speaker 2: we're predicting fifty. I think that's the right thing to do,

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Speaker 2: but there's there's got to be a lot more cuts

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Speaker 2: to follow quickly after that.

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Speaker 1: I think, so fifty and fifty for the end of

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Speaker 1: the year, we think.

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Speaker 2: So, I mean neutral remembering is about two and a

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Speaker 2: half percent or two or three quarters, so we're a

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Speaker 2: long way away from neutral.

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Speaker 1: Do we all agree on this, because in reading all

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Speaker 1: the commentary, I've got the ends I are in a

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Speaker 1: couple of independent economists saying, yeah, maybe, but we see

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Speaker 1: twenty five. What do they see that you don't.

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Speaker 2: Well, that's a great question. I mean, I think the

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Speaker 2: data has been very very clear for quite some time

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Speaker 2: that we need a cup. So, I mean, it's it's

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Speaker 2: not an exact science. People, we have different perspectives and

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Speaker 2: inter put the data in different ways. But I feel

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Speaker 2: pretty strongly that fifty is the right thing to do,

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Speaker 2: and that's the right thing to pass on as quickly

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Speaker 2: as we can.

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Speaker 1: And if it's fifty and fifty, is that filled with something?

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Speaker 1: Not that he'll admit it, but is it filled with

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Speaker 1: some level of regret that we should be doing twenty five?

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Speaker 1: It's nice and easy, soft landing, do it properly, But

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Speaker 1: suddenly two lots of fifteen God knows what next to

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Speaker 1: you is a cockup?

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Speaker 2: Look, I don't know. I mean, I think when you

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Speaker 2: look to the FED, you just got to understand what

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Speaker 2: the data tells you. I mean they looked at the

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Speaker 2: data and said they needed a cup by fifty bent

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Speaker 2: looks at the data. If tofty is the right call,

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Speaker 2: then you know, I don't think they need to look

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Speaker 2: back and understand whether it was too slow too fast.

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Speaker 2: They just look at the data now and make a decision.

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Speaker 2: And we think that right season fifty.

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Speaker 1: But isn't part of the argument in a fifty or

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Speaker 1: seventy five? See? I mean, I could tell you see

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Speaker 1: the American situation was people were panicking about a potential recession.

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Speaker 1: They're not in recession. There haven't been in recession. They're

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Speaker 1: not going into recession. We have the damage is there

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Speaker 1: to be seen, isn't it?

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Speaker 2: Yep?

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Speaker 1: I think so therefore going fifty is like what's fifty?

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Speaker 1: Hang on, I'll throw another fifty in there. That's that's

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Speaker 1: correcting a mistake, isn't it. Well?

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Speaker 2: I think ultimately it is a TikTok. I don't think

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Speaker 2: it's an exact science, and I don't actually think it's

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Speaker 2: that much of the benefit to look back and go,

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Speaker 2: you know, as the data clearer than we thought. I

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Speaker 2: think they're really key thing now is businesses have a

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Speaker 2: certain year round of great cuts that comes so they

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Speaker 2: can invest in where people are soulstat differently, you know,

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Speaker 2: there's hopefully in twelve months and most almost all households

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Speaker 2: will have seen the benefit us through, so they'll have

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Speaker 2: a bit more flexibility. So I think it's much more

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Speaker 2: about the future.

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Speaker 1: Okay, So the twenty five we got the first time around,

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Speaker 1: did that move anything? Did people come knocking at your door?

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Speaker 1: And if they didn't, will they do it on fifty today?

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Speaker 2: I think there was definitely signs of life and the

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Speaker 2: real estate market definitely signs of business interest. Much more

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Speaker 2: about the signal rather than the actual financial impact is

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Speaker 2: you know, we're spoken about that before. I think fifty

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Speaker 2: probably is a bit of a game change of some

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Speaker 2: people because you know that will knock on to test

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Speaker 2: rates coming down and other things that will mean, you know,

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Speaker 2: borings more affordable.

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Speaker 1: Yeah, speaking of the test rates, it was this time

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Speaker 1: yesterday we're talking some things are doing testing under just

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Speaker 1: under nine percent. What do you run at at at

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Speaker 1: the moment and do you defend.

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Speaker 2: It eight and a half at the moment and get

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Speaker 2: it up at the end of today it will be

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Speaker 2: at eight if we get a fifty point cup. So

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Speaker 2: you know, we've got to we've got to move of

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Speaker 2: that and our men. There is always a little bit

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Speaker 2: of leg because I think those test rates in recent

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Speaker 2: times proved to be pretty acerate in terms of what

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Speaker 2: people needed to pay. Yeah, but they need they need

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Speaker 2: to be they need to be adaptable and they need

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Speaker 2: to move down to that's a fewpoint you might.

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Speaker 1: Always a pleasure to stay appreciate it. Steve Yukobitch the

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Speaker 1: p Event CEO. For more from the Mic Asking Breakfast,

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Speaker 1: listen live to news talks.

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Speaker 2: It'd be from six am weekdays, or follow the podcast

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