Insights

Once again, the RBA has made the widely predicted decision to hold the cash rate at 0.25%.

Due to the global pandemic we are currently facing, the economy has experienced a significant downturn and a sharp rise in unemployment. There is, however, certainly more optimism and confidence compared to this time a few months ago. Leading indicators and measures have generally picked up, suggesting that the worst of the economic damage has already passed.

Australia has recently experienced a spike in new cases, highlighting the uncertainty and volatility of the situation. The road to economic recovery weighs heavily on our ability to contain the virus nationally over the next few months. The impact thus far on our economy has been milder and less severe than what was previously expected.

The RBA Board is dedicated to supporting jobs, income, and businesses, to ensure Australia is well positioned for financial recovery. The Board will not increase the cash rate target until progress is being made towards full employment.

Read the full statement HERE