admin Australian Reserve Bank has been trying to help the economic fallout due to coronavirus by its monetary tools and this has led to the central bank cut the interest rates for the second time this month.
The Reserve Bank of Australia (RBA) cut the cash rate to its all-time low of 0.25 per cent on Thursday and stated to not tighten the policy and current implications till it attains its employment and inflation goals.
This is a step taken in the coordination with the global central banks and governments which are all trying to fight the coronavirus-influenced global economy slowdown and these attempts are going to provide a cushion to the global economy.
Another news came from the United States as the Federal Reserve Slashed key rates by 100 basic points the last Sunday which helped in increasing the asset purchase rate and has improved the liquidity of the system. Various other central banks of other economies are trying to model the changes done by the US and Australian central banks.
Factually, there was no meeting scheduled till the first week of April but the state of the epidemic and the impact on the economy forced RBA to schedule an emergency gathering earlier this week and they responded with a positive change for the economy.
There were signals earlier this month that it will not cut the rates below the 0.25 per cent threshold and the move even if undertaken will not help the economy. The reports suggest that this is the first time that a rate cut has been announced from a meeting other than regular one since 1997 in Australia and this reflects the diminishing status of the Australian Economy.
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