Many years ago, when I worked in Taiwan there was a common joke regarding a monorail that was about to be completed in 5 years’ time. The joke was that no matter when you were asked (i.e. in 5 years’ time) that it was perpetually going to take around another 5 years to complete.
Although I’m sure this is not the case with the official RBA cash rate there is an increasing amount of chatter pushing the next rate rise even further out (now final quarter 2019) and as per the attached article from XTB it may not even be a full 25 basis point rise. Saying that a lot of investors hold a significant part of their portfolios in cash and with rates at historical lows it may be time to investigate other cash options.
Chief Operating Officer
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