Today, the Reserve Bank of Australia unveiled a stimulus package of measures to “support jobs, incomes and businesses through this difficult period and they will also assist the Australian economy in the recovery.”

While the most obvious component of the package was a cut to the cash rate, to a record low of 0.25%, there was much more to the stimulus including a reduction to the cash rate target, targets on Australian bonds and credit support for small and medium-sized businesses.

Maximum firepower has now been brought to bear on the virus crisis. Between essentially zero rates, the beginning of quantitative easing (QE), and getting dollars into the hands of small and medium sized businesses, the RBA is doing whatever it takes to support the economy through challenging times.

Today’s measures, together with stimulus support and support packages from Federal, State & Territory governments should provide confidence to Australians that all resources are fiscal and monetary resources are being deployed.

Rick Maggi