Australia's central bank cuts rates to record low 0.1% and expands bond buying

• Australia's central bank cut its cash rate to a record low of 0.1% on Tuesday.
• The Reserve Banks of Australia also said it was planning to buy $100 billion Australian dollars ($70.5 billion) of longer-dated government debt as the economy struggles to recover from a Covid-inflicted recession.
• The RBA also cut its target for three-year bond yields to 0.1%, from 0.25%, following a monthly Board meeting.

A pedestrian and jogger pass the Reserve Bank of Australia (RBA) building, during a partial lockdown imposed due to the coronavirus, in Sydney, Australia, on Monday, May 18, 2020.

David Gray | Bloomberg | Getty Images

Australia's central bank cut its cash rate to a record low of 0.1% on Tuesday and said it planned to buy $100 billion Australian dollars ($70.5 billion) in longer-dated government debt as the economy struggles to recover from a Covid-inflicted recession.

The Reserve Bank of Australia (RBA) also cut its target for three-year bond yields to 0.1%, from 0.25%, following a monthly Board meeting.

A Reuters poll of 25 analysts had found almost all expected a rate cut this week, combined with purchases of longer-dated debt of $100 billion Australian dollars or more.