News

RBA maintains 0.25 percent rates, expands repurchasing

Tuesday 5 May 2020 14:05 CET | News

The Reserve Bank of Australia has maintained the official interest rate at 0.25%, while looking to extend repurchasing operations, as reported by afr.com.

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.

More: Link


Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Keywords: RBA, Reserve Bank of Australia, interest rates, repurchasing, corporate bonds, collateral, credit ratings, repurchasing agreements, Australia, central bank
Categories: Banking & Fintech | Payments General
Countries: Australia
This article is part of category

Banking & Fintech