RBA Cuts Interest Rate in Bid to Build Economy Despite renewed optimism and growth in the housing sector, the Reserve Bank of Australia has slashed the official cash rate from 0.25 per cent to a historic low of 0.1 per cent. RBA deputy governor Guy Debelle says the bank's interest rate cut and $100 billion quantitative easing policy has already started working. In About-Face, UK Will Not Allow Huawei To Be Involved In Any Part Of... Universal Orlando Parks Will Reopen June 5 Despite Risk Of... Pro-Privacy Lawmakers Secure A Vote To Protect Browsing Data From... Jurassic World: Dominion Is Definitely Not The Planned End Of The... White Twitch Talk Show Host Finally Drops 'Rajj Patel' Moniker, Everything We Know About The PlayStation 5. Speculation reached a fever pitch in the lead up to last month’s meeting but ultimately the Board decided against making a move. This is where the RBA purchases government bonds. Your web browser is no longer supported. The information provided on this website is general in nature only and does not constitute personal financial advice. Quantitative Easing: Your two-minute guide to the RBA's hail Mary. "But significant considerations like the strength of the Australian dollar and a lagging Victorian economy have supported the case for further easing. The Reserve Bank sets the target ‘cash rate’, which is the market interest rate on overnight funds. As expected, the move lower was accompanied by a bigger foray into quantitative easing (QE) as well, with the RBA committing to purchasing $100 billion in government bonds of 5 to 10 years maturity over the next six month. Here's what it was like. Reserve Bank of Australia (RBA) Governor Philip Lowe indicated it’s in no hurry to slash the interest rate again from its historic low of 0.25% in a speech delivered on Thursday. The Best Snapchat Games To Play Right Now, Disable UPnP On Your Wireless Router Already, This Android Wallpaper Can Brick Your Phone, Visit Business Insider Australia’s homepage for more stories, Give us your thoughts on these small business practices to win a $250 Westfield gift card, Futuristic Mercedes doesn't have a steering wheel, What it takes to stage a $14 million NYC apartment, Doing these 24 uncomfortable things will pay off forever, Yes, Apple just killed iTunes — here's what that means for your library of music, movies, and TV shows. RBA Interest Rate Decision: What To Expect By Daniel John Grady of Orbex Monday, November 30, 2020 8:57 AM EST The RBA is scheduled to have its last meeting for the year, and won’t meet again until February 2nd. What will a 0.1% interest rate mean for Aussies? The Reserve Bank of Australia looks poised to cut official interest rates by 0.15% next week, which would leave the cash rate at a record low 0.1%. Typically when the RBA lowers interest rates, Australia's major lenders follow. (Prior to December 2007, media releases were issued only when the cash rate target was changed.) A reduction in the cash rate target to 0.1%, a reduction in the target for the yield on the 3-year Australian Government bond to around 0.1%, a reduction in the interest rate on new drawings under the Term Funding Facility to 0.1%, a reduction in the interest rate on Exchange Settlement balances to zero, [and] the purchase of $100 billion of government bonds of maturities of around 5 to 10 years over the next six months.”. Not that they’ve needed an excuse. “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,” Lowe said. When the Reserve Bank announced a cut to the official cash rate early in 2020 as part of its initial response to the effects of COVID-19 on the Australian economy, many analysts and observers thought that historic low rate of 0.25% would be as low as it would go. Cash Rate Target. Posted Wed … I moved to the US from China — here are the biggest cultural differences I've noticed between the 2 countries, Bath & Body Works is now a standalone company — we visited a store and saw why it's been L Brands' secret weapon, CBA and NAB pass on RBA interest rate cut in full, but ANZ and Westpac defy Treasurer Josh Frydenberg's orders, How to watch Netflix on your TV in 5 different ways, The incredible story of Ferrari's 72-year journey from an upstart racing team to a $27 billion luxury brand. "We have reflected this in our interest rate … The Reserve Bank is widely expected to cut its key interest rates when its board meets on Tuesday, just hours before the US goes to the polls.
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