Happy anniversary, 1.5

It’s been exactly a year now that Australian mortgage holders have been enjoying the lowest interest rates in history, with the Reserve Bank this week once again opting to keep the official cash rate at 1.5%. The last time the Reserve moved on rates was in August 2016.

Ten years ago, the Board voted to raise the cash rate up 25 basis points to 6.0%, a far cry from the 14% borne by borrowers in August 1990! Imagine having to find that each month….