Reserve Bank of Australia cuts cash rate, hitting record-low 0.75%
The Reserve Bank of Australia (RBA) cut its cash rate on Tuesday by 25 basis points, hitting a record low of 0.75%.
The central bank of Australia’s cash rate cut implementation was an anticipated decision from spectators. Policymakers on the other hand are looking for ways to boost economic growth and take unemployment rate out of the economic scene.
The down under’s central bank announced the rate cut after it held its monthly policy meeting.
“The Board will continue to monitor developments, including in the labor market, and is prepared to ease monetary policy further if needed,” RBA Governor Philip Lowe said.
The cut rates imposed during the month of June and July had been hardly felt and had made a little impact to beef up economic activity.
Moreover, economists are expecting job cuts in the infrastructure industry in the coming months which will impact the unemployment rate to as high as 5.5% from 5.3% at present.