RBA tipped to cut interest rates tomorrow as coronavirus outbreak continues to roil global economy

By Niko Iliakis · · 2 min read
Fact Checked
Advertiser disclosure

Amid fears the coronavirus outbreak will hasten a recession, the Reserve Bank will meet ahead of schedule tomorrow, with analysts expecting interest rates to drop to a fresh low of 0.25%.

“The RBA is under extreme pressure, following the US Federal Reserve’s extraordinary measure of slashing their official rate by 100 basis points,” said Mozo’s banking expert Peter Marshall.

“Other central banks around the world are implementing similar measures where they can, so it’s not surprising that the RBA is readying to take action.”

In a statement issued on Monday, the RBA said it would soon be introducing a bond purchasing program to protect against further economic fallout.

This comes after the US Federal Reserve decided to slash its benchmark interest rate to near zero and relaunch its GFC-era quantitative easing program.

In a move that will prove instructive to central bankers around the world, the Fed will purchase Treasury bonds and mortgage-backed securities totalling $700 billion in a bid to flush the American economy with cash.

Going down the same path would be a first for Australia. While RBA Governor Philip Lowe gestured towards the possibility months ago, he made clear QE would only be implemented if things were dire.

Details of the plan will be announced on Thursday.

RELATED: RBA prepares for bond buying after US Fed cuts rates to near zero

Minutes from the RBA’s March 3 meeting show the board recognised the potential of the virus to derail economic activity, “particularly in the education, transport and tourism sectors.”

“The uncertainty associated with the outbreak was also likely to affect household spending and business investment in coming months,” they added.

Members acknowledged that even before the virus had begun to roil the domestic economy, progress towards full employment and the board’s inflation target of 2-3% had been sluggish.

They also considered the chance more rate cuts would further inflate property prices, but ultimately decided that a lower cash rate was necessary to get the economy back up and running again.

So if you’re wondering where to keep your savings now that interest rates are set to drop further, visit our savings account comparison page to compare your options.

Savings account comparisons on Mozo

Last updated 12 July 2025 Important disclosures
  • Hi Saver

    4.50% p.a. (for $0 and over)

    0.20% p.a.(for $0 and over)

    Yes up to $250,000

    Bonus rate for the first 4 months from account opening

    Earn bonus interest on your savings for the first four months from the date you open the account, even if you make withdrawals. Transfer or make payments using our mobile app or internet banking. No minimum balance required. Rest easy knowing total deposits up to $250,000 are protected by the Financial Claims Scheme.

    Compare
    Go to site
    Details
  • Mozo Expert Choice Badge
    High Interest Savings Account

    5.15% p.a. (for $0 to $250,001)

    3.70% p.a.(for $0 to $250,001)

    Yes up to $250,000

    Bonus rate for the first 4 months from account opening

    Reward yourself with a higher rate for your good savings habits with the Rabobank High Interest Savings Account. No Account keeping fees. No minimum balance. Support Aussie farmers with every dollar you save.

    Compare
    Go to site
    Details
  • Boss Saver

    4.90% p.a. (for $0 to $100,001)

    0.45% p.a.(for $0 and over)

    Yes up to $250,000

    Minimum $500 deposited into linked transaction account, and 5 Visa Card transactions from that account

    Bonus interest for the first four months from the account opened date. No minimum balance required. No monthly or ongoing fees or withdrawal penalties. Manage your money easily via phone or online banking or via the BCU Bank app.

    Compare
    Go to site
    Details
  • Life - 18-29 years old

    5.00% p.a. (for $0 to $30,000)

    0.40% p.a.(for $0 and over)

    Yes up to $250,000

    Make 5 eligible card purchases per month with a linked Westpac Choice account, make one eligible deposit and grow the balance each month. Account balance must not fall below $0.

    Are you 18 - 29 years of age? Earn up to a generous variable interest rate on your savings when you spend and save with Westpac. For individuals aged 18 to 29 on Westpac Life account balances up to $30,000.

    Compare
    Go to site
    Details
  • Savings Accelerator

    3.10% p.a. (for $0 to $50,000)

    2.35% p.a.(for $0 to $50,000)

    Yes up to $250,000

    New customers who open an account after June 9 2025 receive an introductory bonus 0.75% p.a. variable kick starter rate for the first 4 months on balances up to $500,000.

    Enjoy the flexibility to access your funds with no monthly deposit requirements or lock-in terms. No ING fees to pay. Mozo Experts Choice Awards Everyday & Savings Bank of the Year winner for 2024.^

    Compare
    Go to site
    Details

^See information about the Mozo Experts Choice Savings Account Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.