Economics

Australia Winds In Firehose as QE Cuts Rates, Calms Markets

Three-month bank-bill rate now below similar-maturity swaps
Lowe insists RBA isn’t financing government amid debt debate

A restaurant stands closed at night during a partial lockdown imposed due to the coronavirus in Melbourne on April 9.Photographer: James Bugg/Bloomberg

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By Michael Heath

April 21, 2020 at 7:00 PM UTC

Updated on

April 22, 2020 at 6:11 AM UTC

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Australia’s central bank is scaling back its policy firehosing of money markets as dislocations from coronavirus ease and the bank’s bond-buying program has lowered interest rates across the economy.