The End of High Cash Rates is Nigh

After several years of relatively high interest rates, we seem to have reached a turning point. Recently, the Reserve Bank of New Zealand (RBNZ) signalled that the Official Cash Rate (OCR) is likely to move lower sooner rather than later. Over the past few years, favourable interest rates have been available for term deposits and savings accounts, leading many people to park their money in the bank. However, as interest rates are set to decline, keeping funds in the bank will soon become less appealing. This might be the right time to consider whether cash investments still hold value, given their historically lower long-term inflation-adjusted returns compared to other assets.