The RBA has left rates on hold at their historic low of 0.25 per cent.
“[The RBA] views the March monetary easing package as continuing to help the economy and the main action now being in fiscal policy,” said AMP Capital chief economist Shane Oliver.
“There is a significant chance it may cut the cash rate to 0.1 per cent and it may do more aggressive quantitative easing but that would not be for several months. And it remains ‘extraordinarily unlikely’ to cut the cash rate below zero. The next interest rate move of significance is likely to be a hike but with high unemployment and underemployment, lots of spare capacity in the economy and underlying inflation way below target this is at least three years away.”
It is unconscionable and even reprehensible that interest rates are so low and that Australia is sheepishly following the disaster area’ of a country like the USA in this. Savers, both young and old along with pensioners are being devastated by these patently absurd interest rates. If America had not spent the assets of future generations by printing so much digital money and creating the worlds biggest debtor nation EVER in history, the world would not have to endure these non-existent interest rates for savers. USA could not afford their debt bill if rates went up so unless there’s a rester of some description these ridiculous rates and the damnation of savers are here for a decade PLUS. Immoral to say the least and those responsible in America should be on charges for the future generations!
Yeah good luck with that.
RBA is just responding to the environment it finds itself in, the Fed Govt does nothing to increase wages, it does nothing to stimulate the economy so how do you make someone who is struggling better off?
Make their debt cheaper.
We should f off FATCA and W8BEN’s as well.
Your world view is alarmingly narrow, sadly.