4th reduction by the Reserve Bank of Australia in less than a year, brings cash rate to a record low. FMTNews Australia
SYDNEY: Australia cut its benchmark interest rate to a record low on Tuesday, putting its central bank among the first in the world to ease policy to fight the economic fallout from the coronavirus.
The Board “will continue to monitor developments closely and assess the implications of the coronavirus for the economy. The Board is prepared to ease monetary policy further to support the Australian economy,” Lowe added. Indeed, some speculators had wagered the RBA would cut by more than 25 basis points and were forced to cover short positions in the Aussie on the decision. That pushed the local dollar up from a recent 11-year trough to US$0.6559.
Finance Ministers of the Group of 7 advanced economies and their central bank governors will hold a conference call later in the day to discuss measures to deal with the virus and its mounting economic toll.In an attack on the Fed’s current policy on Tuesday, US President Donald Trump pointed to the RBA cut in a tweet that compared US monetary settings with those of other countries.
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