The short term outlook for interest rates seems to be bad for those that are living off interest income…it looks like interest rates could stay low for quite a while and it is even possible that we could see another cut before the year end. (Once again) if you are a pensioner living off interest income your “salary” has effectively been halved over the past few years by all the interest cuts and while inflation might...

With interest rates having fallen so far and the possibility of still more cuts on the horizon, anyone looking for interest income is pretty hamstrung at this stage. Money market rates are 7% per annum and many of the banks are offering “exceptional rates” for 1 year fixed deposits. They will even “enhance” this if you are over 55. For anyone who is prepared to be locked in for a while there is an even better option...