Australian rate cut double-guns to a minimum record of 0.25%! More than 20 central banks cut interest rates this month

China and Singapore Jingwei Client on March 19th. After the Federal Reserve cut interest rates twice during the month, the US stocks fell four times during the month, and Canada twice during the month, the second interest rate cut in Australia came.

According to Reuters.com, after an unscheduled meeting, the RBA lowered its overnight call rate to a record low of 0.25% and said it would not tighten policy until employment and inflation targets are reached. Earlier, in response to the economic impact of the new crown pneumonia epidemic, on March 3, the RBA cut interest rates to 0.5%.

According to reports, excluding interest rate cuts, the RBA has historically engaged in quantitative easing. The central bank said it would provide domestic banks with three-year financing at a fixed interest rate of 0.25%. Bankers can initially obtain up to 3% of the existing credit balance. The Australian government has hinted that it will take further economic measures based on the already announced $ 17 billion fiscal stimulus package.

Public reports show that in order to deal with the impact of the new crown epidemic on the economy, the global "interest-rate cut" is on the vicious front, and more than 20 central banks have cut interest rates or loosened their currencies.

On March 3, the Federal Reserve announced a 50 basis point rate cut to 1.00% -1.25%; on the 15th, it announced that it would lower the federal funds rate target range to an ultra-low level of 0-0.25%, and launched a $ 700 billion quantitative easing plan.

On March 4, the Bank of Canada lowered its benchmark interest rate by 50 basis points to 1.25% in response to the growing economic risks caused by the new crown pneumonia epidemic. On the 13th, it announced that the benchmark interest rate, the overnight call rate, was reduced by 50 basis points from 1.25% to 0.75%, effective March 16.

On March 11, the Bank of England announced that it would cut interest rates by 50 basis points to 0.25%, the lowest level in history. The Bank of England said that the interest rate resolution committee unanimously adopted a decision to cut interest rates in order to provide more liquidity to support the economy. In addition, the Bank of England has announced new lending programs to support SMEs.

On March 12, the European Central Bank announced that it will not cut interest rates, but will launch a series of measures including long-term refinancing operations (LTROs) and an additional 120 billion euros of quantitative easing to deal with the impact of the epidemic on the euro area economy.

On March 16, the Bank of New Zealand lowered its interest rate by 75 basis points, reducing the official overnight interest rate (OCR) to 0.25%. The Bank of New Zealand said the negative economic impact of the outbreak continued to rise, indicating the need for further monetary stimulus measures.

On March 16, the Bank of Japan held an emergency meeting three days in advance. The result of the meeting was to keep the interest rate unchanged at -0.1% and maintain the target of national bond yields around 0%. The purchase target is increased by 6 trillion yen to a total scale of 12 trillion yen. Raise the Japan Real Estate Investment Trust (J-REITs) purchase target to 180 billion yen. The market had previously expected the Bank of Japan to cut interest rates by 10 basis points.

On March 16, South Korea cut its benchmark interest rate from 1.25% to 0.75%. This is the first time that South Korea ’s benchmark interest rate has fallen below 1%.

In addition to developed countries, other countries and regions have followed suit. On March 3, the Bank of Malaysia cut interest rates by 25 basis points to 2.50%.

On March 16, the central banks of five Middle Eastern countries in Saudi Arabia, Qatar, UAE, Kuwait and Bahrain announced interest rate cuts. Sri Lanka, Vietnam, Czech Republic, Nigeria, Hong Kong Monetary Authority and Macau Monetary Authority also adopted loose monetary policies to stimulate the market.

On March 17, the Central Bank of Pakistan announced a 75 basis point rate cut, the Central Bank of Chile announced a 75 basis point rate cut to 1%, and a 300 basis point rate cut in Egypt reduced the overnight deposit rate to 9.25%.

On March 19, the Philippine Central Bank announced a 50 basis point cut in policy rates. The Bank of Indonesia announced that it has reduced the benchmark seven-day reverse repo rate by 25 basis points to 4.5% and the borrowing convenience rate by 25 basis points to 5.25%. (Zhongxin Jingwei APP)