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RBA Cash Rate

• Posted by Dejan Pekic BCom DipFP CFP GAICD, Senior Financial Planner

It was inconceivable to forecast when we started this business in February 1991 that the RBA Cash Rate would be reduced from 12.00% to 0.10% today.

Click for chart.

The drop in the Cash Rate is good news for growth assets such as property and listed companies because reducing the cost of borrowing will fan their asset prices higher.

For defensive assets however, cash and fixed term deposit solutions no longer make any sense.

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