RBA Assistant Governor Chris Kent said in a speech that Australian authorities have provided “unprecedented support, including via fiscal, monetary and prudential policies” in response to the severe impact of the coronavirus pandemic. RBA has been focused on “keeping the cost of borrowing low and helping to maintain the supply of credit”.
He described that RBA’s measures can be “thought of as representing the ‘bread and butter’ of central banking – providing liquidity to meet demand at a time of considerable need, thereby acting to stabilise crucial markets.”
The operations have “worked well” and “contributed to a noticeable improvement in market sentiment and accommodative financial conditions.” Also, in response to a question, Kent said negative rates were not an option for now and new monetary policy measures are not under consideration for the moment.
