SYDNEY: Australia’s central bank is scaling back its policy firehosing of money markets as dislocations from coronavirus ease and the bank’s bond-buying programme has lowered interest rates across the economy.
In the month since it initiated a quantitative easing programme, the Reserve Bank of Australia (RBA) has purchased more than A$48bil (US$30.3bil) of federal and state government securities. The programme began March 20 with as much as A$5bil a day in purchases at first, and the pace has declined to as little as one-tenth that level in recent days.