The RBA has just announced a cut in official interest rates to 2.5%. This is the lowest interest rate on record in Australia. It is important to understand why the RBA moves interest rates either up or down, the simple reason is due to projected business activity within the Australian economy. So if they are cutting interest rates their view is that the economy is requiring stimulus, while increases to interest rates means the economy is doing well and needs slowing down. The way this affects our clients is both positive and negative, those with accumulated savings find it tougher to provide a meaningful return from cash deposits, while those with borrowings will have a relief from the reduction to interest payable. Our recommendation is that we review your investments and determine whether we need to adjust any investments due to these movements. Please let us know if you are interested by contacting your CHFP Adviser on 02 4984 1988.
Posted on: Tue, 06 Aug 2013 04:48:16 +0000
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