At its meeting today, the Board decided to maintain the current policy settings, including the targets for the cash rate and the yield on 3-year Australian Government bonds of 25 basis points. The global economy is experiencing a severe downturn as countries seek to contain the coronavirus. Many people have lost their jobs and a sharp rise in unemployment is occurring. At the same time, the containment measures have reduced infection rates in a number of countries. If this continues, a recovery in the global economy will start later this year, supported by both the large fiscal packages and the significant easing in ... (full story)

The Reserve Bank has held official interest rates at 0.25 per cent even as signs grow the economic hit from the coronavirus pandemic is widening. Following the bank's regular monthly meeting, governor Philip Lowe confirmed the RBA was sticking with the record-low cash rate it set at the start of the pandemic. While Dr Lowe has signalled on several occasions 0.25 per cent is as low as the bank is prepared to take official rates, financial markets had put the chance of a cut on Tuesday at 60 per cent. The same markets believe the RBA's cash rate will still be at 0.25 per cent by October next year. The RBA will on ... (full story)