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While mortgage holders are rejoicing, the biggest losers from the cratering of the Reserve Bank of Australia’s (RBA) cash rate to a record low of 0.10% has undoubtedly been Australian savers.
According to RateCity, the average savings rate across the banking sector has plunged to a measly 0.37%, the lowest rate on record:
“It’s a grim outlook for Australian savers, many of whom are now earning well under the average rate of 0.37 per cent with no prospect of a rate rise until 2024,” RateCity research director Sally Tindall said.
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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
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