Australian Finance Minister Josh Frydenberg said that the government was planning the second stimulus package that is significantly larger than the fiscal stimulus package of AUD 17.6 billion (the US $ 10.1 billion) last week.
According to Mr Frydenberg, the purpose of this plan is to ease the shock on the job market as well as support the small and medium business. In the interview with Sky News on Friday, Frydenberg said that the government was “keeping an eye on” the aviation industry though when he was asked if this country would consider nationalizing the struggling businesses. “It is not the focus of the current period,” Frydenberg said.
The Government and the Central Bank of Australia (RBA) have announced a huge fiscal and monetary stimulus package in the context that the economy of this country may fall into recession for the first time in nearly 30 years. RBA cut interest rates to a record low of 0.25% on Thursday and will maintain 3-year government bond yields at this level.
Besides, the RBA also announced a loan of at least AUD 90 billion for the banking system, with special credit support for small and medium business. In an additional program, the Government also invested up to AUD 15 billion for small lenders to support consumers and smaller businesses.