The Reserve Bank of Australia kept the cash rate unchanged at a record low of 0.25 percent during its September meeting, but expanded the Term Funding Facility to around AUD 200 billion at a fixed rate of 25 bps for three years to keep funding costs low and assist with the supply of credit to lenders. Banks will be able to draw up the scheme until the end of June 2021. Policymakers reiterated that a recovery from the COVID-19 crisis is now underway in most of Australia. However, the recovery is likely to be uneven and bumpy, with the outbreak in Victoria having a major effect on the economy. The board said it is committed to do what it can to support jobs, incomes, and businesses. Policymakers added it will maintain highly accommodative settings and continue to consider how further monetary measures could support the recovery.
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