Invest
RBA reveals September cash rate
The Reserve Bank of Australia (RBA) has announced the official cash rate for September amid higher unemployment, stage four lockdowns in Victoria and a soon to be reduced JobKeeper payment.

RBA reveals September cash rate
The Reserve Bank of Australia (RBA) has announced the official cash rate for September amid higher unemployment, stage four lockdowns in Victoria and a soon to be reduced JobKeeper payment.

Despite some economic woes the central bank has acted as most economists previously predicted, holding the official cash rate at 0.25 per cent for the sixth straight month.
Speaking before the announcement AMP’s chief economist Dr Shane Oliver predicted the RBA will hold rates until government benefits completely expire in March 2021.
"For now the RBA will remain on hold. It views the March monetary easing package as continuing to help the economy and the main action now being in fiscal policy,” Dr Oliver said.
The chief economist pointed out the potential of future cash rate changes after the JobKeeper completely ends in March.
“There is a significant chance it may cut the cash rate to 0.1 per cent and it may do more aggressive quantitative easing but that would not be for several months.”
“And it remains “extraordinarily unlikely” to cut the cash rate below zero,” he said.
Staying lower for longer
Dr Oliver explained savers better get used to a reduced rate as the economic recovery from the COVID-19 pandemic will be years away.
“The next interest rate move of significance is likely to be a hike but with high unemployment and underemployment, lots of spare capacity in the economy and underlying inflation way below target this is at least three years away," Dr Oliver concluded.
Baillieu chief investment officer Malcolm Wood agrees with Dr Oliver stating the central bank won’t move on rates until the economy is back on track.
"RBA to leave rates at effectively zero until the economy approaches full employment and inflation sustainably in the 2-3 per cent range. This appears years away."
About the author

About the author


Cash
RBA makes first cash rate call for 2022
The RBA has announced its first rate decision for 2022. ...Read more

Cash
Cash remains king for many Australians
Demand for banknotes remains high despite a decline in cash transactions. ...Read more

Cash
Interest rates to rise next year?
Commonwealth Bank has seconded Westpac’s predictions, forecasting that interest rates will rise well ahead of the RBA’s 2024 timeline. ...Read more

Cash
RBA makes latest official cash rate call
The Reserve Bank of Australia has made its May call on the official cash rate, with the economy said to be a long way from the conditions needed to precede a rate rise. ...Read more

Cash
RBA puts chatter of an earlier rate hike to rest
The Reserve Bank of Australia has put to rest chatter among investors that conditions for a higher cash rate could be met as early as next year, reaffirming its stance that the rate is “very likely...Read more

Cash
Australia tipped to go cashless by 2024
Australia is forecast to effectively go cashless in just three years, with three in 10 Aussies admitting that “going cashless would be great for the country”. ...Read more

Cash
Tips to finding a middle ground between equities and term deposits
With record-low interest rates and a volatile sharemarket, mature Australians looking to protect their assets while maintaining their income are being driven to fixed-income products, an industry expe...Read more

Cash
What’s next for paper money?
How many times in the past week have you actually had to pull out your wallet to pay for something? And out of those times, did you actually go to use cash? ...Read more

Wrapping up an eventful 2021
Listen now

What Omicron means for property, and are units right for first-time buyers? What is equity crowdfunding? Are industry super funds tapping into member funds to save their skins?
Listen now

Will housing affordability improve in 2022? Will buy now, pay later become the norm? Why are Aussies staying in failing super products?
Listen now

Who really benefits from crypto ETFs? How will the RBA respond to rising inflation? Could a mandate help address unpaid super?
Listen now

Cash
RBA makes first cash rate call for 2022
The RBA has announced its first rate decision for 2022. ...Read more

Cash
Cash remains king for many Australians
Demand for banknotes remains high despite a decline in cash transactions. ...Read more

Cash
Interest rates to rise next year?
Commonwealth Bank has seconded Westpac’s predictions, forecasting that interest rates will rise well ahead of the RBA’s 2024 timeline. ...Read more

Cash
RBA makes latest official cash rate call
The Reserve Bank of Australia has made its May call on the official cash rate, with the economy said to be a long way from the conditions needed to precede a rate rise. ...Read more

Cash
RBA puts chatter of an earlier rate hike to rest
The Reserve Bank of Australia has put to rest chatter among investors that conditions for a higher cash rate could be met as early as next year, reaffirming its stance that the rate is “very likely...Read more

Cash
Australia tipped to go cashless by 2024
Australia is forecast to effectively go cashless in just three years, with three in 10 Aussies admitting that “going cashless would be great for the country”. ...Read more

Cash
Tips to finding a middle ground between equities and term deposits
With record-low interest rates and a volatile sharemarket, mature Australians looking to protect their assets while maintaining their income are being driven to fixed-income products, an industry expe...Read more

Cash
What’s next for paper money?
How many times in the past week have you actually had to pull out your wallet to pay for something? And out of those times, did you actually go to use cash? ...Read more