RBA cuts rates to a record low of 0.25%

Business reporter Nassim Khadem reports for ABC News with “RBA slashes interest rates to 0.25pc in emergency cut amid coronavirus pandemic”.

The Reserve Bank has cut interest rates to a record low 0.25 per cent and announced extraordinary measures to help prevent a coronavirus-driven recession.

The RBA will buy Australian government bonds as part of its first-ever quantitative easing program, and provide a three-year funding facility to provide cheap loans for Australian banks.

Wow -the RBA announced the lowest rate Australians have ever seen in a special meeting (they normally meet at the beginning of the month to make an interest rate decision).

Reserve Bank governor Philip Lowe said the bank would hold the cash rate at 0.25 per cent "until progress is being made towards full employment and it is confident that inflation will be sustainably within the 2-3 per cent target band".

Dr Lowe said the cash rate could be at this level for some years as it was expecting significant job losses.