PHOTO: The Reserve Bank
The Reserve Bank has unveiled a wave of measures, including a cut in the official cash rate to a new record low, in a bid to drive down the nation’s jobless rate and kickstart growth out of the coronavirus recession.
Following its traditional Melbourne Cup Day meeting, bank governor Philip Lowe said the cash rate would be cut to 0.1 per cent. It has been at 0.25 per cent since late March.
If passed on in full by commercial banks, a person with a $300,000 mortgage would save about $23 a month.
In addition, the bank said it would cut to 0.1 per cent the interest rate it is charging the nation’s banks on a $200 billion line of credit that has been put in place to offer cheap money to small and medium-sized businesses.
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