Australia's interest rates are on hold at the historic low of 0.25 per cent for the sixth consecutive month.
The Reserve Bank of Australia (RBA) today decided to keep the nation's official cash rate at its current level despite increasing concerns over the prolonged economic cost of COVID-19.
Today's decision marks the sixth month in a row without a change.
READ MORE: Westpac, CBA pass on interest rate cuts in full in wake of coronavirus
In March, the RBA made two dramatic cuts – including one out of cycle – in order to stimulate the nation's economy in response to nationwide lockdowns.
The current level of 0.25 per cent is the lowest in Australian history. As a comparison, 20 years ago, in September 2000, the interest rate level was 6.25 per cent.
Fast forward a decade until September 2010, and the rate was still at 4.5 per cent.
READ MORE: Aussie credit card customers ripped off $6.3 billion in savings as banks withhold rate cuts
RBA Governor Philip Lowe said the current monetary climate of the country forced the Central Bank to keep their hand steady.
"In Australia, the economy is going through a very difficult period and is experiencing the biggest contraction since the 1930s," Mr Lowe said in his monetary statement.
"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."
RateCity.com.au research director Sally Tindall said the biggest loser continued to be those not with mortgages but with long-held savings accounts.
"Seventy-six per cent of all household deposits are held by the big four banks, yet they're the ones offering some of the lowest ongoing savings rates on the market," Ms Tindall said.
"Customers earning 0.05 per cent on their hard-earned cash should pick their savings off the floor and move to a higher rate."
READ MORE: Worrying number of Aussies not saving during coronavirus hardships
She said household deposits into savings accounts have hit an all-time high due to government incentives, providing little stimulus for the banks to offer attractive rates.
"Deposit are at an all-time high, which makes it even harder for banks to offer decent savings rates. They don't need to attract new savers – they can't even afford to offer respectable returns to the customers they've got," she said.
"Macquarie Bank last week slashed its introductory rate by 0.50 per cent to 1.50 per cent while AMP terminated its welcome rate altogether."
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