As a traditional savers, another rate cut would be anathema to my spouse and I - roll on the days again of 10% on your money.
To quote Joanne Masters of ANZ on the effectiveness of cutting interest rates:
And of course the third thing when to comes to cutting interest rates is demographics. We have an ageing population, so increasingly as you get older, you have to have to have less debt and more savings and you rely on your savings to spend. And so when you cut rates, you actually hurt the spending capacity, or propensity to spend, of those retirees and of those older people. So all of those factors come in and they reduce the efficiency, or efficacy, of cutting rates at these levels.
