
How low will official interest rates go? (and what comes next?)
After 30 months of inactivity, the RBA decided to cut the cash rate three times last year, and is poised to pull the trigger again in 2020. But just how low will official interest rates go? Back in 2012, the cash rate was 4.25%, and the average savings account would have given you around 3.94% p.a. in interest. That’s a far cry from today’s rates. Right now, the cash rate sits at 0.75%, and the average savings rate is a paltry 0.97% p.a.
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