The bank's quarter of a percentage point reduction in the official cash rate, part of a package of emergency measures, is the first change to rates outside an ordinary monthly meeting this century. It follows a $17.6 billion emergency government stimulus package set to be passed by Parliament next week. Dr Lowe said the bank would hold the cash rate at 0.25 per cent "until progress is being made towards full employment and it is confident that inflation will be sustainably within the 2 to 3 per cent target band". He also announced the RBA would target the interest rate on Australian government three-year bonds at 0.25 per cent. It would do this by buying bonds in the secondary market starting on Friday.

The RBA will also provide at least $90 billion at 0.25 per cent over three years to banks if they lend that cash to small and medium-sized businesses. Loading "The Reserve Bank will also continue to provide liquidity to Australian financial markets by conducting one-month and three-month repo operations in its daily market operations until further notice," he said. Dr Lowe said the package would aid the economy. "The various elements of this package reinforce one another and will help to lower funding costs across the economy and support the provision of credit, especially to small and medium-sized businesses," he said.

Soon after Dr Lowe's announcement, Treasurer Josh Frydenberg said the government would sink up to $15 billion into helping small lenders support small and medium-sized businesses. He said the government's debt agency, the Australian Office of Financial Management, would provide the $15 billion through wholesale funding markets used by small banks and non-bank lenders. "The government's actions will enable customers of smaller lenders to continue to access affordable credit as the world deals with the significant challenges presented by the spread of coronavirus," he said. "Small lenders are critical to Australia's lending markets, often driving innovation and providing competition for larger lenders." Dr Lowe said the crisis had to be managed through close coordination between policymakers in the government and the Reserve Bank. He said it was important to remind Australians the crisis was serious, but temporary.