Wednesday, April 08, 2009

Australia's real cash rate falls below zero

Today's Reserve Bank chart pack (which fails to take account of the latest cut) makes that clear:

3 comments:

Marek said...

Not that anyone can actually get rates that low, business overdraft rates are still close to 10%

Anonymous said...

Hello inflation. Zero real cash rate means we're on the edge of negative real interest rates - when your money is losing money. (thanks mr. m)

Bill Mitchell said...

Japan has had zero nominal rates and often negative real rates for years ... and deflation for some of that time and extremely low inflation for most of it. So it is probably goodbye inflation given the state of the real economy.