The higher the rate, the more wonky the economy is... As a worker, you're stuffed either way.

The Reserve Bank has cut interest rates to an historic low of 1 per cent, as it stares down the twin issues of rising unemployment and a slowing economy.

The 0.25-percentage-point cut follows a move at last month's meeting and is the first back-to-back cut since 2012, amid fears of a global financial meltdown flowing from European banks.

RBA cuts interest rates to a new low of 1pc

The decision was largely expected, with the market pricing a roughly 80 per cent chance of a cut ahead of the RBA board meeting.

The odds of another cut had been shortening since RBA governor Philip Lowe told the market last month that one cut was unlikely to deliver the fall in unemployment the bank is looking for.

The Reserve Bank has recently indicated it views a 4.5 per cent jobless rate as close to full employment.

Unemployment has been steadily rising in recent months, from a trough of 4.9 per cent earlier in the year, and stood at 5.2 per cent in May, while GDP growth has fallen to just 2 per cent — the weakest reading since the immediate aftermath of the global financial crisis 10 years ago.

Read more:

https://www.abc.net.au/news/2019-07-02/rba-cuts-rates-to-a-new-low-of-1p...

What's not mentioned here is the cost of cash, which is valued as two pumpkin and a (small) turnip for a kilo and a half of potatoes.