Lowe says that the RBA feels it has done enough for now
- Expects bond yields across term structure to decline
- Will do whatever is necessary to make sure credit is available
- Says that we've done all we can do with the cash rate
- The focus now is on taking other measures to support lending
Lowe also acknowledges that there is widespread liquidation across the world and a big move into cash, noting that it is not Australia-specific. He's talking about the dollar funding pressure in that regard, as we have seen yesterday.
Anyway, it looks like the RBA has reached a certain floor in terms of policy decisions for the time being. And it is over to the fiscal side of things to back them up for now.
But the longer that this financial dislocation persists, the more pressure will be on the RBA to try and prevent further and permanent economic damage to businesses, households.
AUD/USD has climbed back up to 0.5610 currently, about 40 pips higher than when Lowe began speaking. That said, the pair is still down by 2.8% on the day.
