Reserve Bank of Australia Lowers Interest Rate and Expands Bond Buying Program over COVID-19 Impact
Posted on 11/03/2020
Australia’s economy is in its first recession in three decades due to the COVID-19 lockdowns. The Reserve Bank of Australia (RBA) lowered interest rates to near zero and expanded its bond purchasing program. The RBA would purchase A$100 billion of government bonds with maturities of around five to 10 years over the next six months. The first auction is slated for Thursday.
The RBA lowered its target for three-year bond yields to 0.1%, from 0.25%, to align with the cash rate.