On Tuesday, the RBA moved to increase liquidity in markets by injecting AUD 6.9 billion and has committed to more government bond purchases worth AUD 4 billion to offset weakness in the Australian economy in the wake of coronavirus pandemic. Since March 12, the central bank has so far pushed liquidity worth AUD 65 billion into the financial system.

In addition, the RBA has already purchased government bonds worth AUD 9 billion since announcing it’s QE program on March 20. Its moves so far have helped it hold yield rates steady at its target of 0.25% even as the number of coronavirus cases climb higher and the country goes into lockdown to contain the spread of infections.

The Australian economy is already showing signs of strain as the number of cases soar to 1,900, with services PMI sliding to 39.8 while the ANZ consumer confidence index dipped to the lowest level in three decades to 72.2, far below the 100-threshold. A recent survey by the Commonwealth Bank of Australia reveals that consumer spend was mainly focused on items like groceries, healthcare and alcohol as people chose to stay indoors to protect themselves from coronavirus.

The government announced a second round of fiscal stimulus measures worth AUD 66.1 billion, closely following the first round of stimulus worth AUD 17.6 billion. While economists believe that a recession appears to be inevitable in Australia, these stimulus efforts could help the economy bounce back sooner once the crisis fades.