AMP Oliver’s Insights – RBA cuts rates to record low

AMP’s Dr Shane Oliver discusses the RBA’s decision to cut the official interest rate yesterday, and what it means for investors in this edition of Oliver’s Insights.

Dr Oliver summarises the key points as follows:

  • The RBA’s latest rate cut is aimed at heading off a further slowing in growth which would threaten higher unemployment and lower for longer inflation.
  • Cutting the inflation target would be a big mistake.
  • More rate cuts are likely to be needed ultimately taking the cash rate to a low of 0.5% next year. Ideally this will be combined with more fiscal stimulus.
  • For investors it means low interest rates for even longer.

You can access a copy of this edition of Oliver’s Insights here:

Oliver’s Insights