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Questions and StoriesCategory: QuestionsRBA Drops Official Cash Rate
Edward Duffy asked 3 months ago

RBA Drops Official Cash Rate

Earlier today (3/11/2020) the Reserve Bank of Australia has reduced the official cash rate in the Australian economy to 0.10% in an effort to stimulate the Australian economy during the recession that has been caused by the COVID-19 pandemic. They have also announced that they will inject $A100 million into the Australian economy. I am not sure where this will end and I am sure other economies around the world are experiencing this level of cash rate. Where will it end?

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10 Answers
Jackson Mugarura answered 3 months ago

Australia being a developed country, it has enough resources to keep it economy in good shape. I think this why we are seeing all these economic stimulus measures being taken by the government. I think it’s good move by your government to stabilize the economy, unlike in the developing world like in my country Uganda we are only praying for God’s intervention. And it’s only him that will save his people here!!😎

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Gareth White answered 3 months ago

I think it was inevitable Edward and all other developed economies will be doing the same over the next few months except China because their economy is booming!! I wonder why?

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Kenneth Ogbonnaya answered 3 months ago

That is a great move from the Australian government to support the economy with such ideas and whooping sum of money.

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Ahmad Khasan answered 3 months ago

I think it will end when the government announce that it officially end. In Indonesia, the government still paying the subsidy for the people and the business enterprises. The economy is still struggling all over the world.

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Edward Duffy answered 3 months ago

Yes the world is suffering and China is laughing all the way to the bank and that is because the west is pumping so much money into their economy on crappy consumer goods that are usually thrown in the bin after a couple of years. Australia is also still paying a huge stimulus package to business to keep the economy afloat which is costing this economy a huge amount and it is all borrowed probably from China.
Anyway we will keep going and trying to get better.

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Kenneth Ogbonnaya answered 3 months ago

This is a great move for Australian economy.
 

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Nnaemeka Victor answered 3 months ago

Is the official cash rate better than the previous one?

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Gareth White answered 3 months ago

Edward how does the Gold of Australia fair in the figures. I think the projection was $26billion in 2020. Plus more importantly its forecasted to take over from China in production of gold in 2021

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Ahmad Khasan answered 3 months ago

Edward — What do you mean by the west world subsidize the economy for crappy consumer goods (I assume these are from China)? And, I read the report from the RBA that the Australian financial system has enough cash buffer to support the economy during the pandemic, do you mean that this cash come from borrowed money from China?

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Eli Davis Keinamura answered 1 month ago

The drop in cash rate is expected to reduce on the negative Impacts of Corona virus and stimulate economic recovery programmes.

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