Australia slashes rates to record low

20 March 2020


Australia's central bank cut interest rates to record lows and moved to pump billions into the financial system Thursday, in an emergency bid to pull the economy out of a pandemic-induced free-fall. The Reserve Bank of Australia cut the cash rate by a quarter of a point to 0.25 percent, making it the latest lender-of-last-resort to announce emergency measures during the fast-moving crisis. The bank told markets that rates would remain low "until progress is being made towards full employment", a clear promise that borrowing will remain cheap for the foreseeable future.
It also said it would intervene in the bond market - a move designed to ensure that the Australian government and business can borrow cheaply to counteract the cost of the crisis.

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