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RBA Cash Rate to the lowest level in 53 years?

RBA Cash Rate to the lowest level in 53 years?

Prior to 1990 the Reserve Bank of Australia did not publish an official cash rate setting and cash rates going back to 1960 was a proxy of the current measure. Historical data shows the lowest cash rate proxy was 2.89% in January 1960.

As detailed in yesterday’s blog, “data points from manufacturing, the job market and the terms of trade are all pointing to weaker GDP growth”.

Assuming the Reserve Bank of Australia cuts the cash rate from the current “emergency low” level of 3.0% to 2.75% in early 2013 this will be the lowest level in 53 years.

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This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.

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2 Comments

  1. no surprise for me, my opinion is they will do everything same as japan and result are going to be same as well, official cash rate is going close to big fat zero.

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