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At the Reserve Bank of Australia's meeting today, they decided to lower the cash rate by 25 basis points to 1.50 per cent, effective 3 August 2016.
The move is good news for borrowers but comes as yet another low blow to retirees, who have had the interest earned on their savings accounts wiped out by 12 rate cuts since 2011, recent data showing inflation is at a 17 year low and would probably stay low for some time, while low interest rates are making banks more willing to lend money, which was helping the economy at this present time.
I believe this won't be the end to this story, I predict that the interest rate will drop another 25 basis points at a minimum at the end of the year, possibly even 50 basis points. Some of my more experienced clients believe that it could possibly even hit zero by the year 2018, If this happens inflation will rise & we maybe up for some tough times ahead.
Property is the key to surviving any future recession even if it's only speculative, provided you purchase at the right price & your rental yield is healthy, the fact is that I have always been brought up with the mentality that "Land is the key, God isn't making any more of it"
One of my more experience clients always told me "Remember Tim, Inflation makes Debt irrelevant."
Realestate, Invest in YOUR FUTURE, I'am!

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