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:

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