An introduction to how interest rates fit into the financial fabric of Australia and how they impact the lives of all of us.

Financial market observers, investors and analysts can be forgiven for being perplexed, as longstanding and normal logic was disregarded in the second half of 2020 – remarkably, share and real estate prices actually rose despite the recession, depressed earnings, global pandemic and political turbulence.

By almost any measure, Australia is an exceptional place: its size, its location, its history, its flora, its fauna, its people and its reputation: combined, these make this country ‘more than a bit special’...