The 6 dangers of low interest rates
We have had low interest rates in Australia for a few years now and the RBA has just announced another cut of 0.25%. This makes the official cash rate the lowest in history at 1.25%. Rates are lowered when regulators see a need for the economy to be stimulated. Lower interest rates are good for the share markets as companies can expand by cheaper borrowing. However, it can also lead to some negative repercussions. These are the 6 dangers of …