Identify what type of monetary policy did the RBA implement in that month? What actions would the RBA have needed to take to achieve this change in the cash rate, with respect to Open Market Operations and money supply? Which part of the AD-AS model was this policy aiming to shift?

Monetary policy and financial stability

The Treasury is paying close attention to the policy responses that Australia’s central bank, the Reserve Bank of Australia (RBA), is taking to help mitigate the economic fallout of the COVID-19 pandemic.
⦁ Based on the announcement that the RBA Governor made in November 2020 (see the RBA Monetary Policy Statement), identify what type of monetary policy did the RBA implement in that month? What actions would the RBA have needed to take to achieve this change in the cash rate, with respect to Open Market Operations and money supply? Which part of the AD-AS model was this policy aiming to shift? (3 sentences)