Yesterday, the Reserve Bank announced a comprehensive series of measures to help the economy fight the Coronavirus economic fallout, as follows:
• Cash rate at 0.25%, down 0.25%.
• A 3-year bond rate targeted at 0.25%.
• Cheap money for the banks to lend to small and medium-sized businesses - The RBA will provide a $90 billion line of credit to banks to lend cheap money to SMEs on top of the $15 billion the Government will provide for smaller banks and non-banks.
• Help banks help the economy with a better-than-expected rate for deposits of banks held at the RBA.
The RBA Governor, Philip Lowe’s full speech is available here
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