Oliver’s Insights – The RBA cuts the cash rate to a new record low – posted 6/05/2015
AMP’s Head of Investment Strategy & Chief Economist
Dr Shane Oliver
- The RBA’s latest rate cut along with downwards pressure on the value of the $A should help Australian economic growth pick up to around trend next year.
- While 2% is likely to be the low, further cuts cannot be ruled out, particularly if the $A remains too strong.
- For investors: expect bank term deposits to offer poor returns; consider asset classes providing higher and more stable yields; and expect the $A to continue to trend down.