Rate Cuts And Your Money
A rate cut can feel like a simple story: cheaper mortgages, happy households, end of problem. But if you’re trying to live off savings, build an income portfolio, or decide whether shares are “too expensive”, the real story is messier and far more useful. We’re joined by share market specialist Remo Greco to unpack what a likely Reserve Bank of Australia cash rate cut actually means, and why the market often moves long before the RBA does.
We start with the macro signals the RBA watches, including inflation back around the 2–3% target band, sticky living costs like insurance and rent, and employment data that’s harder to read in a world of shifting migration. From there we look at how rate cuts can affect the Australian dollar, why the impact differs depending on what’s happening in the US and Europe, and what that means if you’re travelling or investing globally.
Then we get practical for everyday investors. We talk about the flood of “income” products that show up when term deposit rates slide, and the one question that cuts through the marketing: what is the underlying asset? We break down term deposits and reinvestment risk, compare government bonds with riskier credit, and explain residential mortgage-backed securities (RMBS) and how RMBS ETFs make this corner of fixed income more accessible. We also tackle the nerves around investing when markets are at all time highs, the difference between a correction and a crash, and what retirees can do to protect purchasing power when inflation returns.
If you want clearer thinking on Australian interest rates, fixed income, term deposits, ETFs, RMBS and retirement investing, hit subscribe, share this with a mate who’s chasing yield, and leave us a review so more people can find the show.