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RBA keeps interest rates at record-low 0.25 per cent during COVID-19 pandemic

Published: (Updated: ) in Australian News by .

The Reserve Bank of Australia has left interest rates on hold at the record-low level of 0.25 per cent as the nation plans to emerge from the economic darkness created by COVID-19.

The Reserve Bank of Australia has left interest rates on hold at the record-low level of 0.25 per cent as the nation plans to emerge from the economic darkness created by COVID-19.

Interest rates were cut twice in March – including one emergency out-of-cycle rate cut – in order to stimulate the national economy and lessen the rapidly rising unemployment rate.

Today RBA governor Philip Lowe said the central bank continues to watch economic predictors of recession extremely closely.

READ MORE: Bottle shop sales soar during COVID-19 pandemic

The RBA's decision to hold rates today will take time to make a difference to the economy, which has been ravaged by the social distancing restrictions designed to slow the spread of the virus.

Industry sectors including tertiary education, hospitality, retail and tourism have laid off thousands of workers.

Job advertisement data published earlier on Monday showed a 53.1 per cent plunge in the number of ads in April.

Graham Cooke, Insights Manager at Finder, said now is the time for consumers to haggle for a lower rate on their mortgage.

"While falling house prices is great news for potential buyers, it poses no relief for current owners who will not see their outstanding loan amounts drop," Mr Cooke told 9News.com.au.

"With rates at rock bottom, now is a more important time than ever to bargain for better value from your bank or switch lenders.

"At a time when households are already stretched, people need to know they are getting the lowest interest rate – that means it needs to have a 2 in front."

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You can also get up-to-date information from the Federal Government's Coronavirus Australia app, available on the App Store, Google Play and the Government's WhatsApp channel.

Source: 9News https://www.9news.com.au/national/interest-rates-may-decision-as-coronavirus-threatens-economy/25211704-083c-401e-827c-88fa7e2951c1

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