The Reserve Bank of Australia has kept on hold the official cash interest rate at its lowest level of 0.25 percent. The decision was unanimously expected by analysts.
RBA Governor Philip Lowe said the country continues to face a difficult period and the outlook remains uncertain at this time. He cited the sharp rise in unemployment as many lost their jobs and financial markets have not completely normalised.
“The Bank’s daily open market operations are continuing to support credit and maintain low funding costs in the economy. To assist with the smooth functioning of Australia’s capital markets, the Bank has decided to broaden the range of eligible collateral for these operations to include Australian dollar securities issued by non-bank corporations with an investment grade credit rating. More details are provided in the accompanying market notice.”
Mr. Lowe also appreciated the substantial and coordinated response in Australia to the coronavirus pandemic. He assures their policies are supporting people’s incomes, maintaining the link between businesses and their employees and keeping lending costs low. The banking system is also helping the count’s economy.
The Board also added that stronger efforts to contain the virus in the short term can help in the economic recovery which is possible before the year ends.
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By Wendy Chamberlain
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With a passion for all things real estate spanning over 20 years, Wendy loves that her role as a Buyers Agent and Sellers Advocate gives her buying and selling clients an experienced voice they can trust when it comes to negotiating to buy or sell something as important as their home or investment. Wendy considers it a privilege to be asked to help others realise such an important goal as home ownership and to be trusted with that honour. Get in touch today via www.wendychamberlain.com.au for a no obligation chat about how Wendy can work with you and help you save time and money to secure your new home sooner.