Insights

Once again Interest rates in Australia have been slashed to 0.25%, a historic rock bottom!

This emergency action was in response to the unprecedented economic implications of the Coronavirus crisis.

The unscheduled board meeting was announced on Monday and resulted in the first change to rates outside an ordinary monthly meeting this century.

The RBA has communicated they will hold the rate at 0.25% until progress is being made towards full employment.

The Reserve Bank Board also agreed to a comprehensive package to support the Australian economy through this challenging period which includes a funding facility for the banking system, with particular support for credit to small and medium-sized businesses.

The Reserve Bank will also continue to provide liquidity to Australian financial markets by conducting one-month and three-month repo operations in its daily market operations until further notice.

The RBA has expressed their priority to support jobs, incomes and businesses, so that when the health crisis recedes, the country is well placed to recover strongly.

Read the full statement here:

https://www.rba.gov.au/media-releases/2020/mr-20-08.html