the year 2 July - RBA drops rates to another low of 1 per cent. 5 July - APRA reduces interest rate buffer requirements for ADIs from 7% to 2.5% above the loan rate 1 October - The RBA announces interest rate cut to 0.75% 2020s 2020 3 March - The RBA reduced the cash rate to 0.5% (from 0.75%) 19 March - The RBA introduces 4 core changes to support the economy as the COVID-19 pandemic shuts borders and businesses Reduction in the cash rate to 0.25% (down from 0.5%) Targeting the yield of the 3 year bond at 0.25%, through the commencement of bond buying Establishment of the Term Funding Facility (TFF) to facilitate cheap credit to small business at rate of 0.25% Increase in Exchange Settlement balances to 0.1% to decrease costs to the banking system for reserves held at the RBA 2 June - The Federal government announces the HomeBuilder grant of $25,000 to support the construction industry to 31 December 2020, with an budgeted cost of $680m April - Economists within the RBA propose pausing the real estate market to avoid a crash 26 August - RBA discussion paper shows that the banking sector could withstand an extreme but plausible 40% fall in Australian house prices. 25 September - The Federal government announces plans to remove Responsible Lending Obligations from the National Consumer Credit Protection Act 2009 3 November - The RBA introduces 3 core changes to support the economic recovery Reduction in the cash rate to 0.1% (down from 0.25% set in April 2020) Reduction of target of 3 year bond yield to 0.1%, with commencement of Quantitative Easing, by announcing the quantity of bond buying - $100 billion of government bonds over a six-month period. Reduction in the interest rate on Exchange Settlement balances to 0.0% 30 November - The Federal government extends the HomeBuilder grants scheme until 31 March 2021 at a reduced rate of $15,000. 2021 1 February - The housing market started the year strongly with a national price increase of 0.9%. 1 March - The housing market saw euphoria through February with national prices rising 2.1% in the calendar month, fear of missing out (FOMO) leading to first home owners and owner occupiers making up the majority of buyers. 12 March - In a sign the interest rate cycle may have turned, rising global bond yields through 2021 caused