As the country tunes in for the 2020 Melbourne Cup, the cash rate decision for November has been announced and rates have been cut.
In response to the economic impact being caused by the COVID-19 crisis, the RBA reduced the cash rate by 0.15% to a new record low of 0.1%.
In making this change the RBA has confirmed the views of many analysts that further stimulus is required to aid Australia’s recovery post Covid.
It had previously stated that it sees a cash rate of 0.25% as a floor however it has softened its stance on a reduction more recently.
In the lead up to its next meeting our central bank will continue to monitor world events such as the second round of European lockdowns and the US election, while closer to home it will be hoping the easing of restrictions in Victoria and the opening of state borders will provide a lift to the economy.
As you’re probably aware, lenders review rates independently of the RBA and some may decide to pass this rate decrease on to customers at different levels over varying time frames.
We’re here to help if you have any questions or wish to review your circumstances. Please don’t hesitate to give us a call.