Reserve Bank of Australia March 2020 monetary policy decision to cut the cash rate
To 0.5% from 0.75%, setting a record low
- says board took this decision to support the economy as it responds to the global coronavirus outbreak
- says to ease policy if needed to support sustainable growth
- says coronavirus has clouded the near-term outlook for the global economy
- says coronavirus expected to delay progress on jobs and inflation
- says too early to tell how persistent the effects of the coronavirus will be and at what point the global economy will return to an improving path
- says will monitor developments in labour markets
- says signs of a turnaround in housing market, especially in Sydney and Melbourne
- says Australia's financial markets operating effectively; will ensure system has sufficient liquidity
- says wages growth remains subdued, not expected to pick up for some time
- says coronavirus outbreak overseas is having a significant effect on the Australian economy at present, particularly in the education and travel sectors
- says GDP growth in the march quarter is likely to be noticeably weaker than earlier expected
- says a pick up in wages growth would be a welcomed development
- says once the coronavirus is contained, the Australian economy is expected to return to an improving trend
- says the Australian government has also indicated that it will assist areas of the economy most affected by the coronavirus
For background to this, my preview earlier …. no brainer:
