00:00After the interest rate cut yesterday, when's the next one?
00:06The RBA's cash rate is now at 3.6%, and Governor Michelle Bullock said yesterday the so-called
00:12neutral rate, where it's not pumping or slowing the economy, is somewhere between 1 and 4%.
00:19That sounds like a wild gap, but actually if they could keep it there, it'd be like
00:24taming a lion.
00:26In the past six years, it's spent just over one of them in that range – just 16 out
00:31of 72 months.
00:34The difference between what it costs to borrow and then lend the money is called the net interest
00:39margin.
00:40Commonwealth Bank's margin lifted to almost 2.1% this year, and it's a big part of what's
00:45fuelled today's mega profit, which was up 7% to more than $10.1 billion.
00:53The share price fell because the profit only met expectations – it didn't beat them.
00:58You really can't please some people.
01:01US inflation results weren't as bad as investors feared – it looks like interest rates will
01:05get cut there next month.
01:07Our dollar lifted marginally against the greenback, stuck in that 65 US cent range.
01:14And gold rose more than a full percentage point – it has soared in value by 37% this year.
01:21Now back to the banks.
01:23The Commonwealth is clearly our most valuable company, ahead of miner BHP, Blood Products
01:28Group, CSL and the other big banks, NAB and Westpac.
01:32Three banks in the top five, five in the top ten.
01:36Yeah, that seems like a normal, diversified economy.
01:40And that's finance.
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