The Reserve Bank of Australia has cut the cash rate to a new record low of 0.5 per cent as it acts to soften the economic impact of the coronavirus.
Pricing for the 25 basis point rate cut advanced from an outside chance last week to a foregone conclusion on Tuesday following a torrid weekend for a coronavirus-rattled economy.
“The coronavirus has clouded the near-term outlook for the global economy and means that global growth in the first half of 2020 will be lower than earlier expected,” RBA governor Philip Lowe said in his address after the bank’s March board meeting.
Australia’s interest rate had already been lowered three times to 0.75 per cent last year in a bid to kickstart an economy that was sluggish even before the summer’s bushfires and coronavirus threat came into play.
The Australian dollar rose to 65.52 US cents from 65.28 US cents immediately after the 1430 AEDT decision.
AAP
Be the first to comment