The RBA has cut rates again following calls from within the business and finance community for the bank to provide more stimulus to the Australian economy.
The cash rate now stands at 0.50 per cent.
RBA Governor Philip Lowe had previously said that the economy had reached a “gentle turning point” with improvements in housing growth and a “brighter outlook” for the resources sector. The decision to cut rates is likely an attempt to prop up the Australian economy following the bushfire emergency and the broadening impact of the coronavirus outbreak.
Speaking at a press conference, Prime Minister Scott Morrison asked the Big Four banks to pass on the full rate cut to consumers.
The decision brings the interest rate closer to 0.25 per cent, at which point the RBA has indicated that it would consider a quantitative easing program.