Luke Grant talks to Peter Switzer from switzer.com.au following the Reserve Bank's decision to cut interest rates to 1%.., and what will this mean for those retirees who have their cash invested in interest-bearing investments such as bank accounts &  term deposits.

RBA governor Philip Lowe said that further cuts could be on the way if the jobless rate does not improve.

"Given the circumstances, the board is prepared to adjust interest rates again if needed to get us closer to full employment and achieve the inflation target," Lowe said.