Australia’s central bank cut interest rates to record lows and moved to pump billions into the financial system Thursday, in an emergency bid to pull the economy out of a pandemic-induced free-fall. The Reserve Bank of Australia cut the cash rate by a quarter of a point to 0.25 percent, making it the latest lender-of-last-resort to announce emergency measures during the fast-moving crisis. The bank told markets that rates would remain low “until progress is being made towards full employment”, a clear promise that borrowing will remain cheap for the foreseeable future.
It also said it would intervene in the bond market – a move designed to ensure that the Australian government and business can borrow cheaply to counteract the cost of the crisis.
