The RBA’s latest speech marks a distinct change in tone, and signals lower rates for longer. This is bad news for savers in particular as deposit rates will drop to zero or below.
Negative Rates Here We Come!
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– And this is based on the faulty assumption that the FED, ECB, BoE, RBNZ and RBA determine (short term) rates instead of following the rates as set by a person called Mr. Market.
– And then another myth is blown to pieces as well. The myth that a central bank can “control the yield curve”. The yield curve is also determined by Mr. Market.