Why rates should hit a record low

Most calls for a rate cut today have centered on global economic conditions, particularly China. But there's a wider range of reasons the Reserve looks set to cut.

The Reserve Bank will almost certainly be cutting the cash rate to a record low 2.5 per cent today. The ‘record’ low covers all the data from the Reserve archives that go back to 1959, when the bank was separated from the Commonwealth Bank to conduct central banking functions, including in the modern terminology, setting monetary policy.

These record low interest rates are due to many factors, and outlined below are the key reasons, in no particular order, why the Australian economy is about to get interest rates never before seen.

Global conditions:



{{ twilioFailed ? 'SMS Code Failed to Send…' : 'An SMS verification code has been sent ...' }}

Hi {{ user.FirstName }}

Looks like you have already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to complete your SMS verification

We cannot send you a code via SMS to {{user.DayPhone}}

If you didn't receive SMS code please

SMS code cannot be sent due to: {{ twilioStatus }}

Please select one of the options below:

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device

Verify your mobile number to proceed...

Please check your mobile number below and press the Send Verification Code button. This will be used to complete your verification in the next step.

Please sign up for full access


Updating information

Please wait ...


{{ productPrice }} / day
( GST included )
Price $0
GST $0
Discount -{{productDiscount}}
TOTAL {{productPrice}}
  • Mastercard
  • Visa

Please click on the ACTIVATE button to finalise your membership


The email address you entered is registered with InvestSMART.

Please login or select "Don't know password"

Please untick this box when using a public or shared device

Register as a new member

(using a different email)

Related Articles