RBA's 0.25% Cash Rate Fixed for 6 Months Straight

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The Reserve Bank of  has recorded an all-time low official cash (OCR) rate at 0.25% in its September 1 report. 

According to the official website of the RBA, the OCR remained unchanged since March 4, 2020, when the global pandemic hit the world causing havoc across industries, including the property sector. 

After hitting a three-year plateau from 2016 to 2019, with cash rate fixed at 1.5%, the RBA recording a lowering of beginning in the second quarter of 2019. 

In the statement that accompanied the report, the RBA noted the current economic condition brought about by the pandemic played a crucial role in the agency's decision to fix the cash rate in the past six months. 

In fact, the country has seen the toughest economic downturn since the 1930s, even worse than the 2008 global financial crisis (GFC). 

This, however, does not mean the hope is impossible as the Australian government has already initiated fiscal programs to stimulate spending, and ultimately help improve the overall economy. 

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Darin Hindmarsh is the founder and CEO of Intellichoice Finance, a Brisbane-based mortgage broking company that was established 18 years ago. He was shortlisted as a finalist in the 2020 Australian Mortgage Awards - Pepper Money Broker of the Year – Specialist Lending.