The Reserve Bank of Australia (RBA) decided today to keep the current interest rate at 0.25 per cent, despite rumors circulating that they are willing to lower interest rates in an effort to help boost the Australian economy.
Today's meeting has decided to focus more on the high unemployment rate as a national priority that needs to be resolved in the near future.
The RBA plans to buy government bonds, while providing low interest rate easy loan packages and see the impact in the near term.
Some urges and recommendations to the RBA to aggressively change monetary policy and seek to lower interest rates and possibly initiate the idea of a move towards negative interest rates.
This measure is needed to provide cheap credit to borrowers, reduce savings rates and encourage Australians to borrow and spend back into the market. Slowly but surely, money will start circulating in the market and help various business segments to breathe again, thus boosting the economy.
However, the RBA will wait another month before taking action to reduce interest rates. They will re-evaluate economic performance after the federal budget and stimulus programs begin to enter the market and see how it will support the job creation rate.
The RBA governor predicts the unemployment rate will increase ill and remain high for a certain period of time. "The global economy is slowly recovering after a severe contraction," he said. "However, the recovery is uneven and the next situation depends on the pandemic situation of the Covid-19 virus."
RBA REMAINS WITH LOW INTEREST RATE
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