Question: the treasury is paying close attention to the policy responses...
The Treasury is paying close attention to the policy responses that Australia’s central bank, the Reserve Bank of Australia (RBA), is taking to help mitigate the economic fallout of the COVID-19 pandemic.
Question: Based on the announcement that the RBA Governor made in March 2020 (see the RBA statement), what type of monetary policy did the RBA implement? What action would the RBA need to take to achieve this change in the cash rate, in terms of Open Market Operations and altering the money supply?
RBA statement - https://www.rba.gov.au/media-releases/2020/mr-20- 06.html