RBA maintains 0.25 percent rates, expands repurchasing

RBA offered to include riskier corporate bonds as collateral in its repurchasing operations and said the economy could bounce back stronger than first thought from the coronavirus downturn. Governor Philip Lowe said the central bank's daily open market operations were continuing to support credit and maintain low funding costs in the economy and this would be expanded because markets had not normalised.

He announced that corporate bonds with credit ratings as low as BBB- would now be considered as collateral in the central bank's repurchasing agreements that are designed to supply liquidity to financial markets.
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