RBA announce 25bp interest rate cut

  


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:

Reserve Bank of Australia March 2020 monetary policy decision to cut the cash rate

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