Savers and older Australians lose out as RBA cuts cash rate again (The Aust 03/03/20)

It might be oxygen for the sharemarket, but the latest rate cut is going to hang savers and older Australians out to dry.

Cash deposit rates will now struggle to keep pace with inflation, instantly pushing investors into riskier investments.

Ironically, conservative investors who might have avoided the worst of the recent sharemarket drop by moving into cash will be among the first hit.

“This is the shape of the market now – it’s volatile and it’s actually been like this for more than a year … investors have opportunities in this atmosphere, but they have to accept the volatility,” said Will Hamilton of Hamilton Wealth Partners.