It's the third time interest rates have been cut this year. For many mortgage holders, the difference could be just a few more dollars in your pocket every month. "Some of the banks have already priced in today's announcement by the Reserve Bank, it had been highly forecast and highly expected. The RBA could cut rates by 0.25 per cent in December or the next meeting, the first RBA board meeting of 2020, on Tuesday 4 th February 2020. The Reserve Bank sets the target ‘cash rate’, which is the market interest rate on overnight funds. With that, several analysts expect the RBA to be less chipper this time around, likely acknowledging that the outbreak could have more repercussions on the Australian economy than previously thought. ", WHAT RECORD-LOW INTEREST RATES MEAN FOR THE AVERAGE AUSSIE. Economists of the Reserve Bank of Australia (RBA) today decided to slash rates in a bid to stimulate the country's economy out of a COVID-19-driven recession. “Reflecting this uncertainty, the Board considered a range of scenarios at its meeting. Media releases issued in 2020. RBA meeting dates 2020 (Schedule ) RBA Meeting Calendar 2020. If your bank passes the full rate cut on – and that is an "if" – the average mortgage holder could have an extra $33 a month. There have been signs that the slowdown in global growth that started in 2018 is coming to an end. AUD/USD may continue to approach the 2020 high (0.7064) ahead of the RBA rate decision on July 7 as the central bank is widely expected to retain the current policy. Economists of the Reserve Bank of Australia (RBA) today decided to slash rates in a bid to stimulate the country's economy out of a COVID-19-driven recession. The information provided on this website is general in nature only and does not constitute personal financial advice. "I suspect the horse races weren't the only thing punters were betting on today. In January 2020, the official cash rate was 65 basis points higher at 0.75 per cent. Information about your device and internet connection, including your IP address, Browsing and search activity while using Verizon Media websites and apps. No actual adjustments to interest rates are expected in the upcoming rate statement, but it’s important to note that a lot has changed in the coronavirus situation. The cash rate is actually the interest rate charged on overnight loans between banks. The RBA said it intends to keep interest rates at 0.10 per cent for the next three years at least. You can change your choices at any time by visiting Your Privacy Controls. Let’s plan your next move. In his monetary statement, RBA Governor Philip Lowe said the reasoning behind the cut was to provide credit to more Australians. "For the first time since 2011, the RBA has declared a Cup Day cut despite some skepticism from experts around the effectiveness of further monetary stimulus measures," Mr Cooke said. Yahoo is part of Verizon Media. The RBA has lowered rates to 0.5%. Before acting on any information on this website you should consider the appropriateness of the information having regard to your objectives, financial situation and needs. Even though, given the CPI rate, they are practically negative now. Reserve Bank of Australia (RBA) Governor Philip Lowe indicated it’s in no hurry to slash the interest rate again from its historic low of 0.25% in a speech delivered on Thursday. Reserve Bank Board Meeting – Interest Rate Decision (outcome announced 2.30 pm) Share. That would take the official Australian rate to 0.5 per cent, the effective lower bound. 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