Australia jumps into QE for first time

Joining a rush by global central banks to pump cash into the economy, Australia cut rates for the second time in a month (to an all-time low of 0.25%) and made a historic foray into quantitative easing.

It set a target for the yield on three-year Australian government bonds of around 0.25%, which it plans to achieve by purchases in the secondary market.

"We are clearly living in extraordinary and challenging times," RBA Governor Philip Lowe declared, adding the situation was "just too fluid" for it to provide an updated set of economic forecasts.

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