RBA

The Reserve Bank has gone all-in on propping up the economy by cutting the official cash rate to 0.1 per cent – the lowest it has ever been in Australia.

The Reserve Bank says Australia has already started to exit its recession and the lockdowns in Victoria haven’t affected the national economy as much as first feared.

The RBA is keen to see more stimulus moves from all governments to get the economy going again as it this week left the door open to more interest rate cuts.

The Australian dollar recently hit a two-year high of just over 74 US cents at the start of the month and another interest rate cut would put downward pressure on the rising Australian dollar.

Despite the current turbulent times the Reserve Bank has kept the official cash rate at 0.25 per cent for another month.

The RBA is worried that people and businesses are not willing to borrow despite record-low interest rates.

The Reserve Bank has kept the official cash rate at 0.25 per cent at its July meeting as Melbourne braces itself for a hard border and another round of coronavirus lockdowns.

The Reserve Bank yesterday kept rates unchanged at their historic low of 0.25 per cent.

After an emergency cut to interest rates just weeks ago the RBA has this week left them unchanged at 0.25 per cent at its April meeting.