BREAKING NEWS | The Reserve Bank of Australia has officially cut interest rates by 0.25 per cent to an all-time-low of 0.5 per cent. The reduced cash rate comes in response to concerns around the Coronavirus outbreak and Australia's bushfire crisis.
'Once the Coronavirus is contained, the Australian economy is expected to return to an improving trend. This outlook is supported by the low level of interest rates, high levels of spending on infrastructure and the lower exchange rate. There are further signs of a pick-up in established housing markets, with prices rising in most markets, in some cases quite strongly,' said Reserve Bank Governor, Philip Lowe.
According to the Sydney Morning Herald, 'if passed on [by the banks] in full, the cut would deliver a person with a $300,000 mortgage a saving of $40 a month'.
In response, Prime Minister Scott Morrison said 'there is no doubt that if the banks were to take a decision today on cash rates that the government would absolutely expect the four big banks to come to the table and to do their bit in supporting Australians as we go through the impact of the coronavirus'.
by Beth Oleyar in Media