This time next week, Australia's cash rate could sit at just 1.75 per cent.
The Reserve Bank of Australia's Board members will meet on Tuesday, 1 September 2015, where they will no doubt deliberate on a potential third interest rate cut since the beginning of the year.
It first cut the cash rate in February and again in May. It's been reluctant to make a change in the time since, leaving it at a record low 2 per cent, but the latest events shaking the global economy could be enough to force the Board's hand.
The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) only narrowly avoided a bear market this week – defined as a fall of 20% or more from its peak – with the market's sentiment taking a beating.
That alone mightn't be enough to warrant another cut, but a number of other factors may be.
These could include, weak inflation, a slowdown in the Chinese economy, lacklustre business spending and crashing commodity prices as well as an anticipated slowdown in the booming Australian property market.
The cherry on top would be the United States delaying its interest rate hike which would likely bolster the Australian dollar, and you'd have a very decent case in favour of an official interest rate cut.
Regardless of whether or not it cuts rates on Tuesday, there's a strong case for more easing in monetary policy before the end of the year – possibly to a low of 1.5 per cent – making high-yield dividend-paying companies your best bet for maximising your long-term wealth.
Thanks to the market's recent falls, I believe companies like Woolworths Limited (ASX: WOW), Collection House Limited (ASX: CLH) and JB Hi-Fi Limited (ASX: JBH) are looking particularly compelling.
Right now, they yield 7.4 per cent, 6.3 per cent and 7.1 per cent when grossed up for tax credits, respectively.
That certainly beats the 2 to 3 per cent returns you'll find on most term deposits or so called 'high interest' savings accounts…
