Australia cut interest rates to a record low on Tuesday as a worsening trade war between Beijing and Washington raises recession risks for the world economy and pushes major central banks into what could be a global monetary easing cycle.
Australian Prime Minister Scott Morrison meet with the country’s central bank chief on Wednesday to discuss the nation’s slowing economy as pressure grows for urgent fiscal stimulus.
Australia’s central bank (CB) held rates at an all-time low of 1% on Tuesday as it weighed the impact of past easing though markets are wagering the tide of policy stimulus, which will compel it to cut rate again before year-end.
Australia’s central bank cut interest rates for the third time this year on Tuesday in a bid to stimulate a sluggish economy and signalled it was prepared to do more if needed, knocking the local dollar to a one-month low.
Australia’s central bank (CB) has slashed its benchmark interest rate to a record low on Tuesday, putting the bank among the first in the world to ease policy to fight the economic fallout from the coronavirus epidemic.
Australia’s central bank held its cash rate at record lows at its first meeting of the year and sounded doggedly optimistic even as markets bet devastating bushfires at home and a viral epidemic in China would force aggressive easing.
Australia is pumping about A$100 billion ($56 billion) into the economy as it seeks to minimise the blow from the coronavirus epidemic. The Reserve Bank of Australia (RBA) slashed interest rates in an out-of-cycle cut to an all time low
Australia’s central bank injected A$6.90 billion ($4.10 billion) into the financial system on Tuesday and bought A$4 billion in bonds as economists predicted a spike in unemployment and the worst recession in the country’s history due to the coronavirus.