March 2020 – COVID-19

March 2020 – COVID-19

March 19, 2020

The Reserve Bank of Australia (RBA) Board announced a range of policies today in response to the COVID-19 pandemic, including:

• cutting the cash rate target by 0.25 basis points to 0.25%, and committing to keep it at that level until progress is being made towards full employment and the Board is confident that inflation is sustainably within the target band,
• introducing a target for 3-year government bond yields of around 0.25% to be achieved by purchasing Government bonds (including semis) in the in the secondary market (yield curve control),
• establishing a new term funding facility with particular support for credit to small and medium-sized businesses (up to AUD 90B).

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