RBA Cash Rate Held – September
September 1, 2020 Uncategorised
Following the RBA meeting today, the board once again committed to maintaining the cash rate at the historically low rate of 0.25%.
The global pandemic and the economic hardship that has occurred as a result, remains the leading factor for holding the cash rate.
Over the past month, infection rates have declined across our country, but they remain high and continue to rise in others. Victoria entering a ‘State of Disaster’ and implementing further restrictions indicates the effects of the pandemic on our economy are far from over. The Australian economy is currently navigating through a very challenging period and is experiencing the biggest retrenchment since the 1930s.
We expect the cash rate will remain at this record low rate for some time, considering the RBA have announced they are committed to maintaining the rate until progress has been made toward economic recovery and full employment. Australia remains well positioned for a stable revival; despite the downward pressure the pandemic has caused.