Source: The Guardian
We have seen initial stimulus packages from the US and in Australia brought to bear already, but much more will need to be done by the Federal Reserve, the RBA and the international counterparts in conjunction with government policy to pro-active. The details of the Australian and US respective stimulus packages are outlined further below.
Australian Government
The Morrison Government has announced a $17.6 billion economic plan to keep Australians in jobs, keep businesses in business and support households and the Australian economy as the world deals with the significant challenges posed by the spread of the coronavirus. Read the – Economic Stimulus Package, Media Release.
The Australian Government further announced a package of $15 billion to support small businesses – Government to invest up to $15B in support of SME lending.
Reserve Bank of Australia
The RBA announced an interest rate cut in March with commentary supporting another in April – RBA Press Release – Monetary Policy Decision
The RBA further announced that it would take additional measures as require to support the Australian financial system – RBA Press Release – Statement by Philip Lowe, Governor.
On the 19th of March the RBA announced an additional rate cut and additional measures to support debt markets and to provide funding to banks and Australian businesses – Statement by Philip Lowe, Governor: Monetary Policy Decision.
In the US the response is equally strong with President Trump declaring a national emergency which opens up emergency funding.
US Federal Government
Trump has also put a range of stimulus measures to congress that are currently being considered in the domain of $1 trillion and will consider a third round of stimulus in and where so far as required – Trump Coronavirus Relief Package.
US Federal Reserve
The US Federal Reserve announced a massive interest rate cut and an influx of credit via treasury and mortgage backed bonds to the tune of $700 billion (USD) – Federal Reserve issues statement.
