The package of measures announced in March – including the target for the yield on 3-year Australian Government bonds – has led to record low funding and borrowing costs, which have eased the burden of the pandemic for many people.
The RBA's open market operations and the Term Funding Facility have both contributed to a plentiful supply of liquidity in the Australian financial system and this is supporting the supply of credit to households and businesses. This supply of credit will be important in the recovery phase.