Labor welcomes today’s news that the Reserve Bank and Australia’s financial regulators are taking coordinated action to support the functioning of markets, and boost credit, liquidity and economic activity during this challenging time.
 
Coronavirus is having a substantial impact on Australian workers, families, businesses and communities and has created significant uncertainty and volatility in financial markets.
 
The Reserve Bank is now set to pursue unconventional measures to support the financial system and economy, having announced that it stands ready to purchase Australian government bonds in the secondary market.
 
This comes as the RBA moves to boost liquidity through repurchase (repo) operations, and follows ASIC’s decision this morning to limit trades by large equity market participants to support the functioning of Australia’s financial system.
 
There is an ongoing role for the Government, the Reserve Bank, Australia’s financial market regulators and the banks to ensure the continued flow of credit to impacted businesses and organisations, and do what is necessary to support the economy and keep markets liquid and working.
 
The Government needs to ensure its policy response to Coronavirus is coordinated across government, including better coordination of its health and economic measures.
 
Each day it becomes clearer that the Morrison Government’s first stimulus package was insufficient.
 
Scott Morrison and Josh Frydenberg must move to implement their original stimulus package quickly and properly, and take additional steps to support Australia’s economy and financial system as required.
 
Labor will continue to be supportive, responsible and constructive and that means injecting a sense of urgency where it is lacking or absent.