Following its meeting today, the Reserve Bank of Australia's Board, have decided to decrease the cash rate by 25 basis points, bringing the official cash rate to 0.50 per cent.
This is the first move we have seen in rates since October, 2019 and brings about a new record low cash rate for Australia.
In a statement released by RBA Governor, Philip Low, he advised the decision was made to support the economy as it responds to the global coronavirus outbreak
"The global outbreak of the coronavirus is expected to delay progress in Australia towards full employment and the inflation target. The Board therefore judged that it was appropriate to ease monetary policy further to provide additional support to employment and economic activity. It will continue to monitor developments closely and to assess the implications of the coronavirus for the economy. The Board is prepared to ease monetary policy further to support the Australian economy".
The decision is good news for borrowers, however, the current low interest rate environment has already placed increased pressure on our depositors, such as retirees, who rely on the interest income from their deposits.
In setting our interest rates a number of factors are considered as we endeavour to continue to provide value to all members.
Geelong Bank will reduce all existing and new home loan interest rates by 0.21%, effective 30 March 2020.
Savings account rates will be reduced by 0.21% to 0.25%, effective 1 April 2020.
For the official RBA article, please visit the Reserve Bank’s website.