RBA interest rate decision: Reserve Bank cuts rate to record low of 0.75% – live Read moreLowe said it was “reasonable to expect that an extended period of low interest rates will be required”, suggesting the RBA is “prepared to ease monetary policy further”. Labor seized on the rate cut, with the shadow treasurer, Jim Chalmers, arguing “if the Liberals were doing a good job managing the economy the Reserve Bank wouldn’t have needed to cut interest rates to another new record low today”. But Frydenberg put the emphasis on the RBA’s reference to “the trend to lower interest rates globally” – suggesting it had responded to global conditions rather than domestic economic weakness. The Australian Chamber of Commerce and Industry also urged lenders to pass on the cut to give households the “greatest benefit” from lower interest rates. Before the third interest rate cut this year analysts including Deloitte Access Economics had warned that successive cuts have left Australia little “wriggle room” to revive the economy in the event of a further downturn.

Source: The Guardian October 01, 2019 05:59 UTC