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RBA November Cash Rate Drops to New Low 0.10%

  T he official cash rate has dropped 15 basis points to 0.10% following the Reserve Bank of Australia (RBA) board meeting earlier today. It is the lowest the cash rate has fallen since its last historic cut to 25 basis points in March. The decision follows two months of speculation. While many economists had initially earmarked October as the most likely time for a drop, the majority later revised estimates to indicate the RBA would drop rates in November. Westpac , NAB and Commbank all predicted today’s November monetary policy decision. Recession likely over but unemployment still on radar Australia’s first recession in almost 30 years could be over, according to estimates from the RBA. During the Senate estimates hearing last week RBA Deputy Governor Guy Debelle revealed it was likely the Australian economy experienced positive growth during the September quarter. “Our best guess is it looks like the September quarter for the country recorded positive growth rather th
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RBA October Cash Rate Remains on Hold – Despite Expert Speculation

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T he October official cash rate will remain on hold at 0.25% following the central bank’s board meeting earlier today. The decision marks the seventh consecutive month the Reserve Bank of Australia (RBA) has left the cash rate unchanged. The decision was despite talks of an October rate drop to 0.10%, which spiralled over September but ultimately bottomed out, the attention instead shifting to the prospect of a November cut. It is thought the RBA wanted to avoid making any policy changes until the government’s federal budget announcement, which is due to be handed down by Treasurer Josh Frydenberg tonight. While Commonwealth Bank had predicted rates to hold steady, NAB had predicted there would be a rate cut to 0.10% in either October or November - later updating its forecast to say November seemed most likely. Westpac initially predicted October would see a rate drop but in late September updated its forecast to say it would not be until the next board meeting on 3 November. &
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RBA: cash rate remains unchanged 6 months on from historic cut

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Six months on from the historic emergency rate cut to 0.25% in March , the Reserve Bank of Australia (RBA) has elected to once again leave the cash rate unchanged. The decision was made at the RBA’s regular monetary policy meeting, which happens on the first Tuesday of every month. As it stands, members do not anticipate a cash rate change for at least three years, a point RBA Governor Philip Lowe affirmed while appearing before the House of Representatives Standing Committee on Economics in August. “The Board has clearly indicated that it will not increase the cash rate until progress is being made towards full employment and it is confident that inflation will be sustainably within the 2-3 per cent target range,” Dr Lowe told the committee. “Given the outlook I discussed earlier, these conditions are not likely to be met for at least three years. So, it is highly likely that the cash rate will be at this level for some years and having a target for three-year yields of 25 ba
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RBA maintains official cash rate at 0.25% as Australian economy hits a turning point

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Date: 4 August 2020 At its August board meeting, the Reserve Bank of Australia (RBA) elected to once again hold monetary policy, leaving the cash rate at 0.25%, where it has sat since March. The decision was largely expected, and the board has stated on numerous occasions it would not be increasing the cash rate until progress is made towards employment and inflation targets. It has, however, not completely ruled out making future changes to its monetary support package and is willing to do so if circumstances permit. As it stands, the current RBA support package is as follows: Cash rate reduced to 25 basis points. Bond buying program implemented with aim to achieve a 3-year yield target of 25 basis points. Term Funding Facility created to give authorised deposit taking institutions (ADIs) so banks and lenders equity as needed to support customers. Although satisfied with its current package, during its July meeting the board hypothesised alternative monetary policy c
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