According to Governor Glenn Stevens, its meeting last May 03, 2016, “the Board decided to lower the cash rate by 25 basis points to 1.75%, effective May 04, 2016.”
Will this official cash rate brings Australia’s economy fluctuating? Or to continue stabilize? It shows that official cash rate is reducing by 0.25% and initiate to a record low. Interest rate plays a big role in uplifting the economy as life of an economy. I think there is advantage also of having this rate in cranking up growth to Australia’s economy. Impetus will get the economy through a tough way and definitely we need to lower the unemployment and increase confidence especially foreign investors. On the other hand, lower interest rate can urge perhaps inflation. We hope that this interest rate cut will stimulate economic growth.