Central banks around the globe continue to implement ground-breaking monetary policies to support the economies during the coronavirus crisis.
On Tuesday, May 5, the Reserve Bank of Australia issued its Rate Statement. The Australian policymakers decided to maintain the Cash Rate unchanged at 0.25%.
The Bank announced it would continue to purchase $50B worth of 3-year Australian Government Securities (AGS). Also, the Bank decided to broaden the range of eligible collateral for credit operations to support financial markets and maintain low funding costs in the economy.
Note that the RBA Monetary Policy Statement was released on Friday, May 8.
On Thursday, May 7, the Bank of England released its Monetary Policy Report and Monetary Policy Summary. As the result, the Official Bank Rate remained unaltered at 0.10%.
The Bank announced it would continue with the programme of £200B of UK government bond and sterling non-financial investment-grade corporate bond purchase. The total purchases are expected to reach £645B.
Moreover, the Financial Policy Committee (FPC) introduced a Term Funding scheme with additional incentives for Small and Medium-sized Enterprises (TFSME).
On Wednesday, May 13, the Reserve Bank of New Zealand published its Monetary Policy Statement, as well the Rate Statement. The New Zealand policymakers voted to hold the Official Bank Rate at 0.25%.
The Bank announced it would expand the Large Scale Asset Purchase (LSAP) programme up to a maximum of $60B over the next 12 months to deliver further stimulus to the economy. Also, it was revealed that inflation-indexed government bonds (IIBs) would be added to the LSAP.
On Friday, May 22, the Bank of Japan released its Monetary Policy Statement. The Japanese policymakers decided to maintain the Policy Rate unchanged at -0.10%.
The Bank would continue to purchase the Japanese government bonds (JGB) without setting an upper limit so that 10-year JGB yields would remain at around 0%.
Moreover, the Bank announced it would actively purchase exchange-traded funds (ETFs) and Japan real estate investment trusts (J-TREITs). The total purchases are expected to reach around ¥12B and ¥180B, respectively.
The Bank of Japan would maintain their amount of CP and corporate bonds at ¥2T and ¥3T, respectively. Also, it would additionally purchase ¥7.5T worth of assets until the end of March 2021.
Initial reaction on the market: