Chinanews.com, March 4th. According to the Australian website, on the 3rd local time, the RBA announced another interest rate cut, and the interest rate fell to a record low of 0.5%. At the same time, the four major banks also acted swiftly. Historically, at the same time, they announced their agreement with the central bank and cut interest rates by 0.25 percentage points.
According to reports, the RBA has announced its latest monetary policy, with interest rates lowered by 0.25 percentage points to a record low of 0.5%. In response, the RBA said that the decision is to support the domestic economy, which has been hit by the global outbreak of new crown pneumonia.
RBA Governor Lloyd said the outbreak of the new crown pneumonia epidemic overseas is having a significant impact on the Australian economy, especially in the areas of education and tourism. This quarter's GDP will be significantly lower than expected.
He said that it is not yet possible to judge how much or how long the epidemic will affect the world and the Australian economy, and the RBA may relax monetary policy further. Once the new crown pneumonia epidemic is brought under control, the Australian economy will return to an upward trend.
At the same time, after Federal Treasury Secretary Freidenberg directly called the chief executives of the banks, the four largest Australian banks simultaneously announced for the first time in five years that they would quickly cut interest rates by 0.25 percentage points.
Former RBA governor McGibbin warned that even a "moderate" epidemic could cost the world economy tens of trillions of Australian dollars.