The Australian central bank has lowered key interest rates to mitigate the negative economic impact of the new corona virus. The Reserve Bank of Australia (RBA) thus takes the lead among central banks in the world with monetary action against the harmful effects of the virus on the economy.
The most important interest rate goes down by a quarter of a percentage point to 0.50 percent, the lowest level ever. The RBA indicated that it was ready with more interest rate steps. In a statement, central bank governor Philip Lowe said that the corona virus has a significant impact on the Australian economy and that it is still difficult to estimate what the longer-term consequences will be.
The central bank of Malaysia also announced a reduction in interest rates in view of the corona virus. The interest rate goes down by a quarter of a percentage point to 2.50 percent. According to the Malaysian central bank, the virus mainly has a negative effect on tourism and industry in the country and growth will come under pressure in the first quarter.
Other central banks such as the US Federal Reserve, the European Central Bank (ECB), the Bank of England and the Bank of Japan have already indicated that they are ready to take measures to mitigate the negative effects of the corona virus on the economy.