The reduction in the cash rate from 0.25 per cent is the first since March this year, when it was cut twice in the month in an effort to mitigate the impacts of COVID-19 on the economy.
The RBA board has also agreed to similar reductions for other measures to keep market interest rates and funding costs low across the economy.
RBA governor Philip Lowe says the board is expecting to keep the cash rate at 0.1 per cent for at least three years.
UNSW-Canberra Professor, Massimiliano Tani, explains.
People in Australia must stay at least 1.5 metres away from others. Check your state’s restrictions on gathering limits.
If you are experiencing cold or flu symptoms, stay home and arrange a test by calling your doctor or contact the Coronavirus Health Information Hotline on 1800 020 080.
