I will explain each of these actions in more detail shortly. The overall aim of all these monetary policy actions has been to support economic activity in Australia through a number of channels. The policy actions have underpinned record low funding costs across the financial system and for governments.
Lower borrowing costs free up cash flow for both households and businesses, some of which is spent. The lower interest rates and the funding for the banking system support the flow of credit to households and businesses. Lower interest rates also support asset prices, which boost balance sheets, and thereby consumption and investment.