RBA enacts emergency rate cut
March 20, 2020
Second Cut for March To Fight Economic Slowdown
The Reserve Bank has cut rates for a second time this month as efforts continue to contain the economic impact of the coronavirus.
Recognising that the virus has caused major disruptions to economic activity across the world, the RBA announced on Thursday it is slashing rates to 0.25 per cent.
“At some point, the virus will be contained and the Australian economy will recover. In the interim, a priority for the Reserve Bank is to support jobs, incomes and businesses, so that when the health crisis recedes, the country is well placed to recover strongly,” the RBA Governor Philip Lowe said in announcing the decision.
The RBA has also set a target for the yield on 3-year Australian Government bonds of around 0.25 per cent, which will be achieved through purchases of government bonds in the secondary market, starting today.
Mr Lowe confirmed that the RBA will work closely with the Australian Office of Financial Management (AOFM) and state government borrowing authorities to ensure the efficacy of its actions.
The Governor reiterated that Australia's financial system is resilient and well placed to deal with the effects of the coronavirus.
“The banking system is well capitalised and is in a strong liquidity position. Substantial financial buffers are available to be drawn down if required to support the economy. The Reserve Bank is working closely with the other financial regulators and the Australian government to help ensure that Australia's financial markets continue to operate effectively and that credit is available to households and businesses,” he concluded.
Are you undercharging for your fees? We’ve got the five warning signs that can help you diagnose whether your prices are too low.
The Reserve Bank of Australia has lowered interest rates. What does a drop in interest rates mean for you, your business and your financial opportunities?
Proposed legislation from the Victorian Labor Government could offer your employees the right to work from home 2 days per week. We’ve outlined how to make the most of WFH.
Should you buy or lease your new equipment? Here are some pros and cons of each. We also can review your financial position, cashflow and cost base to decide whether buying or leasing is the right thing for your business.
The ATO’s updated Tax Time toolkit is your 101 guide to business taxes. We’ve summarised the key resources you can find in this toolkit, with links to the ATO site.
You’ve sold your business! But what happens now!? We’ve outlined five potential pathways your post-sale life could take, and how they help you find new goals and lifestyles.
Are you ready to sell your business? Here are six important ways to secure the best deal, through solid negotiation and a deep understanding of your core strengths as a company.
Is your business debt getting out of control? Come and talk to us about strategies for reducing debt and getting cashflow under control.
What will you do differently this year to enable your business to thrive? Conducting a past-year review with our experienced advisors will provide valuable insights for this year's goal-setting.
The Australian Taxation Office (ATO) has unveiled its compliance focus areas for the 2025 tax year, highlighting the importance of accurate claims and thorough record-keeping, particularly for small businesses and individuals.
