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RBA cuts cash rate to record low 0.25% amid COVID-19 outbreak

The Reserve Bank of Australia (RBA) has cut the cash rate to a record low of 0.25% following an emergency meeting due to the impact the coronavirus is having on the economy.

RBA Governor Philip Lowe said in a statement the move was due to the virus causing “major disruptions to economic activity across the world”.

“This is likely to remain the case for some time yet as efforts continue to contain the virus,” said Governor Lowe.

Governor Lowe added the cash rate cut would help support jobs, incomes and businesses so that when the health crisis recedes, the country will be well placed to recover.

“The Board will not increase the cash rate target until progress is being made towards full employment and it is confident that inflation will be sustainably within the 2–3% target band,” said Governor Lowe.

Hasn’t the RBA already cut the cash rate this month?

That’s right. And ordinarily, the RBA board only meets on the first Tuesday of every month. But as we’re all well aware, these aren’t ordinary times so an emergency RBA Board meeting was called.

The RBA last held its regular meeting on March 3 and cut rates to 0.5% because it believed the coronavirus outbreak was going to hit the economy hard.

However, over the past fortnight, global financial markets have been in freefall as countries all around world reel from the economic fallout of the COVID-19 pandemic.

Want to know what this rate cut means for your home loan?

It’s worth noting that lenders don’t automatically reduce your monthly repayments when they drop interest rates.

With this being the second RBA cash rate cut this month – and the fifth since June 2019 the impacts from COVID19 are significant and will be for sometime yet so if you're experiencing financial difficulty please contact your bank's hardship team in the first instance. Here are the details you'll need. Call us if we've missed your bank and we'll get it for you.

ANZ | Hardship Number | 1800 149 549

Bank First | Hardship Form | Form here

Bankwest | Hardship Number | 1300 769 173

Bank of Melbourne | Hardship Number | 1300 630 266

Choicelend | Hardship Number | 1300 155 426

Commonwealth Bank | Hardship Number | 13 30 95

Macquarie Bank | Hardship Number | 1300 363 330

ME Bank | Hardship Number | 13 15 63

National Australia Bank | Hardship Number | 1300 135 323

Pepper Money | Hardship Number | 1800 356 383

Westpac | Hardship Form | Form here

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.