Sunday, August 31, 2008

A week you can bet on

What a week it'll be.

The first big event is Tuesday - when the Reserve Bank board meets and announces its rate cut decision at 2.30pm eastern time.

And guess what - thanks to Lasseters Sportsbook you can bet on the outcome.

If, as is likely, the Reserve Bank cuts its cash rate by 0.25 percentage points and you bet $100, you will make a $20 dollar profit.

But if it cuts by more than that, as is possible, you will get nothing. On the other hand, if you are backing a bigger cut, your profit will be $800.

They both seem like pretty good deals to me. Not sure whether the whole thing is taxed, but it looks like a good opportunity to clean up. Ethical considerations prevent me from doing it, but not you.

[Insert legal phrase about no liability, seek independent advice etc]

On Wednesday the ABS releases the Australian National Accounts. We will see how far economic growth has slipped, and get an idea of what the Reserve Bank needs to do from here on.

The following Monday , September 8, at 9.00am, The Governor himself will submit himself to a parliamentary grilling at the Dallas Brooks Hall. Go along if you are in Melbourne.