The Reserve Bank has cut interest rates to a record low of 0.1 percent as the bank's governor confirmed Australia was not out of recession. The combination of the RBA's bond purchases and lower interest rates is expected to help the country recover economically by lowering financing costs for borrowers, contributing to a lower exchange rate, and supporting asset prices and balance sheets.

The easing that has been implemented so far has already had a significant impact on the housing market; house prices are now trending up nationally and the lending data suggests this will continue in the near term," Dr Hunter said.

What does it mean when interest rates are cut?

An interest rate cut generally means that the economy has fallen into recession. In response to the recession, the Fed targets lower interest rates that encourage people to take out loans and invest money.

Observation

Adelaide was one of only three cities to record house price growth over the June quarter. It pushed the city’s house prices to a record high of $553,036.

Source

https://www.abc.net.au/news/2020-11-03/rba-cuts-interest-rates-record-low-coronavirus-pandemic/12838760#:~:text=The%20cut%20to%200.1%20per,target%20to%200.1%20per%20cent.