RBA takes unprecedented action

In an emergency meeting called weeks ahead of its usual date, the RBA has taken the unprecedented step of cutting rates to 0.25 per cent and committing to the purchase of government bonds in the secondary market – a quantitative easing program.

“At some point, the virus will be contained and the Australian economy will recover,” RBA governor Philip Lowe said in a statement.

“In the interim, a priority for the Reserve Bank is to support jobs, incomes and businesses, so that when the health crisis recedes, the country is well placed to recover strongly.

Mr Lowe is set to give a speech this afternoon where he will likely reveal the details of that program.