Reserve Bank Australia holds cash rate at 0.10% and Australian Economic Outlook

At RBA meeting on 2 March 2021, Monetary Policy Decision was to maintain the cash rate and 3-year Australian Government bond at 0.10%.


Due to the COVID-19 vaccine roll out, the global economic outlook is looking better than it was a few months ago while higher U.S longer-term bond yields have been noticed.


Australia's economy is recovering faster than expected. While employment rate is improving, the unemployment rate is decreasing, and retail spending is stronger than it was many months ago. Australia's GDP is expected to recover to its pre COVID-19 level by the end of this financial year. Due to low lending rates, the housing prices have strongly increased over the past few months. Australian dollar is within the higher range versus US dollar since the recovery after COVID-19.


Although the recovery is still ongoing and depends on the COVID-19 situation, the Australian economy is seen to have a sustainable improvement and its current monetary policy is designed to assist the economy in recovery.






Source: RBA (March 2021)

Disclaimer: The information provided is general information only. It does not take into account your circumstances. It’s important to consider your particular circumstances before deciding what’s right for you. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person.

211 views0 comments