All central banks face the same situation: domestic economies, which were shut down to stop the spread of the coronavirus, are now in a deep recession. Central banks are steadying credit markets, lowering rates, and taking extraordinary action to support economic growth. The possibility of short-term deflation is more of a threat than inflation.
Last week, three major central banks issued new policies.
The RBA maintained rates at 25 basis points and will keep its bond-buying program operational. Here is its description of the Australian economy emphasis added:
"The Australian economy is going through a