OctaFX | OctaFX Forex Broker
Open trading account

Australia: RBA announces a rate cut and QE – Westpac

The Reserve Bank of Australia (RBA) has announced a rate cut; QE and Term Lending while Treasury has announced the purchase of asset backed securities, economists at Westpac Institutional Bank brief. 

Key quotes

“The cash rate target has been reduced from 0.5% to 0.25%. Furthermore, it will not be increased until progress has been made towards full employment and inflation is sustainably within the 2–3% target band.”

“The RBA has now adopted QE. However, instead of nominating a volume of bond purchases, it has nominated a target yield for the three year Australian government bond rate of ‘around 0.25%’.” 

“Westpac is particularly pleased to see that the RBA is offering a term funding facility for the banking system.”

“These initiatives will not affect the Bank’s ongoing provision of liquidity to Australian financial markets through repo operations which have recently been extended to six month maturities or longer.”


WH considering idea of buying 25 and 50-year bonds to finance $1.3 trillion stimulus – Bloomberg

The White House is considering the option of buying 25- and 50-year bonds to finance the $1.3 trillion stimulus package to counter the negative impact
Read more Previous

US Treasury Sec. Mnuchin: Government focused on providing liquidity to companies

The US government is focused on being able to provide liquidity to companies, US Treasury Secretary Mnuchin reiterated on Thursday. "President Trump i
Read more Next
Start livechat