How does the cash rate work?
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How does the cash rate work?
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We’re unpacking a fundamental concept that impacts every mortgage holder, saver, and investor out there — the cash rate.
The Reserve Bank of Australia, or as we say the RBA, uses the cash rate as a tool to implement monetary policy. The RBA Board meets to decide whether to change the cash rate target, that put very simply is the level they want the cash rate to sit at.
We dust off the pages of on The Clever Investors dictionary to break it down in simple terms, explain how it works, and why it matters to you as a property investor.
What happens when the cash rate goes down? and will borrowing money always become cheaper or expensive?
If you found this episode helpful, don’t forget to subscribe and share it with your friends who are keen to grow their property portfolio! And as always, if you have questions or want us to cover a specific topic, reach out to us — we love hearing from you.
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