The Reserve Bank of Australia has held official interest rates at 0.25 per cent |swrighteconomy
The Reserve Bank of Australia has held official interest rates at 0.25 per cent as it waits to see how the economy is responding to the efforts of it and the Morrison government to offset the financial fallout from the coronavirus pandemic.take interest rates to a record low
The RBA's decision came after the ABS released a special survey of how businesses are responding to the pandemic, with two-thirds reporting a hit to their cash flow and turnover.The RBA has spent more than $30 billion buying state government bonds on the secondary market in a move that has pushed down interest rates on that debt. The federal government's debt agency on Tuesday sold another $1 billion of debt, which will not be repaid until 2031, with an interest rate of 0.899 per cent.
"A very large economic contraction is, however, expected to be recorded in the June quarter and the unemployment rate is expected to increase to its highest level for many years," he said.
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