Why Australian interest rates could stay low for decades… and what that means for your investments
By Tim Farrelly – CEO of Farrelly’s, and asset allocation consultant to Australian Unity Personal Financial Services
Many investors fear the impact of a return to interest rates of 5%, 6% or even 7%pa that were considered normal just a few years ago. They worry about the impact on share and property markets, they worry about locking fixed rate term deposits and annuities and missing out on the big rate rises to come.
Others are worried about their ability to service borrowings if interest rates move sharply higher.
Yes, interest rates will not be this low for ever, but rate rises are likely to be modest and temporary. As for 7% cash rates, we are unlikely to see them again for decades.
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