Insights

It is no surprise given the global pandemic and economic hardship our nation is currently facing that the RBA has made the decision to hold the cash rate.

Victoria entering a ‘State of Disaster’ and implementing further restrictions indicates the effects of the pandemic on our economy are far from over.

The RBA slashed the rate in March to a historically record low of 0.25% as an emergency action in response to the pandemic. They have communicated that they will hold the rate at 0.25% until progress and recovery is being made towards full employment.

The RBA will continue to be proactive in keeping funding costs low in Australia and credit available to households and businesses. The board has outlined that they are committed and will do what is necessary to assist in supporting jobs, incomes, and businesses during this challenging and uncertain period. The extend of downward pressure on our economy is still unknown, yet Australia remains well positioned for a full recovery.