Reserve Bank keeps Australian interest rates at a low level of 0.25 percent – as experts say it could have been in place for years
- The Reserve Bank of Australia has set interest rates at 0.25 percent
The Reserve Bank has set interest rates at a record low of 0.25 percent, but warned Australians to expect the highest unemployment in the coming years.
Philip Lowe, the governor of the central bank, feared that “a very large economic contraction” would occur in the quarter of June.
Economists have already predicted an increase in the unemployment rate in Australia to unseen double-digit numbers since the Great Depression of the early 1930s, as the corona virus caused the unemployment level to double from its 5.1 percent pace in February.
“The unemployment rate is expected to rise to the highest level over many years,” he said.
Eliza Owen, chief research officer at CoreLogic, said that the cash interest rate is “likely to remain at a quarter percentage point in the coming years.”