On 1 July, the RBA announced a record low cash rate of 1%, which brings mortgage rates to their lowest level in over half a century. The low rate also means your deposits in the bank will be earning less interest. Trying to secure a new term deposit over 2% is almost impossible.
Currently, the investment markets are predicting an 80% chance that the 1% rate will be cut to 0.75% at the next RBA meeting in October.
So, what do low interest rates mean for you and your financial goals?Continue reading