The RBA’s decision to hold the cash rate at 0.25 per cent means interest rates on loans will remain stable, which will help many households and businesses manage their cash flow.
The Reserve Bank of Australia has again held the cash rate at 0.25 per cent at its September meeting on Tuesday, which is a vote of confidence in the economy.
AMP Capital senior economist Diana Mousina says the cash rate setting is appropriate for the moment. But the RBA may need to reduce the cash rate in the future to support the post-COVID-19 pandemic economic recovery.