Reserve Bank of Australia Reduces Interest Rate by 15 Bases

Reserve Bank of Australia Reduces Interest Rate by 15 Bases The Reserve Bank of Australia reduces the interest rate by 15 bases. The bank, which cuts interest rates in line with the expectations of economists, announced that it has started a new bond purchase program. The Reserve Bank in Australia, which wants to recover in the economy after the quarantine process entered due to the coronavirus epidemic, started work. The bank, which first lowered the policy rate, then started a new purchase program. In line with the expectations of economists, the Reserve Bank of Australia lowered the policy rate by 15 basis points from 0.25 percent to 0.10 percent. With the rate cut, the bank announced that it started a bond purchase program of 100 billion Australian dollars (70.4 billion dollars). The bank will purchase bonds with a maturity of 5-10 years in the next 6 months. Making a statement regarding the decision, the President of the Australian Reserve Bank, Philip Lowe, pointed out that the bank aims to reduce financing costs, lower exchange rates and support asset prices with balance sheets with the interest rate cut and new bond purchase program.