March cash rate slashed to 0.5% amid Corona Virus Outbreakthe Reserve Bank of Australia (RBA) slashes the official cash rate for March to 0.5 percent amid speculation the fallout from the COVID-19 would have a significant impact on our economy. Given the evolving situation it’s is difficult to predict the extent of the impact, however, it is expected that the economy will return to improved levels once the virus is contained.
“The Board took this decision to support the economy as it responds to the global coronavirus outbreak,” said RBA governor Philip Lowe.
“The coronavirus outbreak overseas is having a significant effect on the Australian economy at present, particularly in the education and travel sectors.
“Given the evolving situation, it is difficult to predict how large and long-lasting the effect will be. Once the coronavirus is contained, the Australian economy is expected to return to an improving trend.”
Let’s see what the big 4 Banks do.