RBA Announcement: Lowest Cash Rate in History

The Reserve Bank of Australia (RBA) has cut the official cash rate from 0.25% to a new record low of 0.10%.

The Reserve Bank of Australia has cut the official cash rate from 0.25% to a new record low of 0.10%.

The Reserve Bank of Australia (RBA) has cut the official cash rate from 0.25 per cent to a new record low of 0.10 per cent.

This reduction, along with other monetary measures, are needed to assist with the economic recovery, as mentioned in Governor Philip Lowe’s official statement:

“The combination of the RBA’s bond purchases and lower interest rates across the yield curve will assist the recovery by: lowering financing costs for borrowers; contributing to a lower exchange rate than otherwise; and supporting asset prices and balance sheets. At the same time, the RBA’s Term Funding Facility is contributing to low funding costs and supporting the supply of credit to the economy.”

“Given the outlook for both employment and inflation, monetary and fiscal support will be required for some time. For its part, the Board will not increase the cash rate until actual inflation is sustainably within the 2 to 3 per cent target range.”

A number of lenders have already moved in anticipation of the rate reduction meaning now is the ideal time to review your current loan.

Get in touch today to see if you can benefit from record low cash rate!