The Reserve Bank meets on Tuesday to decide whether or not to lower its cash rate target to 0.1 of a percentage point (from 0.25 percentage points).

Economists say this means the cash rate is “effectively” negative right now.

The “effective” cash rate is currently hovering between eight basis points and 13 basis points (0.13 per cent), because the money market has pushed the rate below the RBA’s cash rate target of 0.25 per cent.

But the effective cash rate — the rate which influences your mortgage — could easily fall very close to zero.
From there, the bank will be trying its best to lower longer-term interest rates.

You can see why the RBA governor has tried to shift the focus to what the Federal Government can do in recent years.