Reserve Bank holds official interest rate at 0.25%

Mr Lowe says that “Globally an uneven economic recovery is under way after a very severe contraction in the first half of 2020. The future path of that recovery is highly dependent on containment of the virus. High or rising infection rates have seen a recent loss of growth momentum in some economies.”

In Australia, continued Mr Lowe, “the economy is going through a very difficult period and is experiencing the biggest contraction since the 1930s. As difficult as this is the downturn is not as severe as earlier expected and a recovery is now under way in most of Australia. This recovery is, however, likely to be both uneven and bumpy, with the coronavirus outbreak in Victoria having a major effect on the Victorian economy.”

The low interest rate means it is cheaper now for buyers to borrow money. This should make residential properties more attractive. It could also entice more buyers to go after their dream home or investment.