The RBA Cash Rate
On the first Tuesday of every month the Reserve Bank of Australia (RBA) announces the official cash interest rate. With the current Cash rate at 1.00% and the economy failing to gain strength the, today the RBA dropped the Cash rate to 0.75%
The question is why?
The main purpose of a rate drop is to stimulate the economy. The logic is relatively simple. Low rates on loans mean lower repayments and hence more incentive and serviceability to borrow money now.Continue reading