Please click the link below to view Shane Oliver’s view on the recent interest rate cuts.
Key points raised are:
- The RBA eased rates this month because actual inflation has fallen below target and is likely to stay there for a while.
- Cutting inflation targets would be foolish and make it harder to get inflation back up to target.
- Low rates are helping the Australian economy and zero rates and quantitative easing have helped the US. Central banks are not out of ammo.
- For investors, it’s likely to remain a low interest rate environment for some time to come.
