Australia’s cash rate, decided by the Reserve Bank of Australia’s Board, currently stands at 2.50%, the lowest it’s ever been. This is good news if you owe money but bad news if you’re a saver, as this figure is used by lenders and banks to decide how much you pay and how much interest you earn on the money you have invested.
As this rate is at a historic low and has been for some time, it doesn’t take a financial genius to figure out there’s only one way it can go. Economic growth drives interest rate rises, and with experts forecasting that Australia is leaving the financial lull behind, the rate looks set to get moving once again. Equally important is to be aware there’s a long way to go before it could stop.