Lowest cash-rate in history announced today
BREAKING: Reserve Bank of Australia (RBA) lowers cash rate by 25 basis points delivering the lowest historical cash rate of 1.5%.
With the global economy growing at a lower than average pace, the RBA has announced another historic cut to interest rates, following the previous historic low of 1.75% announced in May 2016.
“Against the backdrop of a very weak inflationary pulse for the Australian economy and heightened concerns about the global economic outlook, the RBA Board decided to provide the Australian economy with a further dose of rate cut medicine in August,” said Housing Industry Association (HIA) Chief Economist, Dr Harley Dale.
“The decision was widely, but not universally expected and will not come without some controversy – there is not much fuel left in the rate cut tank.”
“The August interest rate cut – presuming it is passed on by financial institutions – is welcome at a time when Australia’s new home building cycle is peaking and when there is an unprecedented level of uncertainty regarding the housing outlook.”
“There will inevitably be some speculation of a resurgence in existing property price growth in some Australian markets, but it is unlikely that today’s interest rate decision will unleash another wave of frothy demand,” concluded HIA’s Harley Dale.
Australian Interest rate history 2014 – 2016