So the RBA reduced the interest rate again today.
Everytime there is discussion on this topic in the paper, it revolves around how much it will save people with home loans. I also see that it reduces the amount of interest earned on money kept in banks.
But what, if any, effect does an interest rate change have on the market? From a newbie point of view, the interest a bank will pay me now will be about 5.5%, so any returns I seek from the market will have to be above that to compensate me for the risk.