Australia's official cash rate has dropped
to a record low of 0.10%, marking the lowest interest rate in the nation's history. Challenging times call for unprecedented measures, with the Reserve Bank of Australia (RBA) making the tough decision to slash rates in an effort to stimulate the economy out of recession. The latest interest rate cut from early November - the third cut this year - marks the latest step in a steep decline from the 0.75% rate recorded in January 2020. While the nation's largest banks have not moved their variable rates, fixed rates have been dropped in many leading mortgage products.
As the latest interest rate was announced,
RBA Governor Philip Lowe said the reasoning behind the reduction was to provide
credit to more Australians: "At its meeting today, the Board decided on a
package of further measures to support job creation and the recovery of the
Australian economy from the pandemic... With Australia facing a period of high
unemployment, the Reserve Bank is committed to doing what it can to support the
creation of jobs."