Since 2020, we've seen the Australian cash rate soar from a record low of 0.10% to 4.35% in November 2023. Supported by booming equity markets, high inflation, and global uncertainty, cash was king.
While global central banks began cutting rates earlier this year, Australia was slow to follow. With the RBA delivering its second rate cut of 2025 — bringing the cash rate down to 3.85% -- investors may need to reassess their defensive positioning for a lower rate environment. Is this the turning point for fixed income and other rate-sensitive assets?