RBA: Board took this decision to support economy as it responds to global coronavirus outbreak
|Following are the key headlines from the March RBA monetary policy statement (via Reuters):
Board took this decision to support the economy as it responds to the global coronavirus outbreak.
To ease policy if needed to support sustainable growth.
Coronavirus has clouded the near-term outlook for the global economy.
Coronavirus expected to delay progress on jobs and inflation.
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.
Will monitor developments in labor markets.
Signs of a turnaround in housing market, especially in Sydney and Melbourne.
Australia's financial markets operating effectively; will ensure system has sufficient liquidity.
Wages growth remains subdued, not expected to pick up for some time
Coronavirus outbreak overseas is having a significant effect on the Australian economy at present, particularly in the education and travel sectors
GDP growth in the March quarter is likely to be noticeably weaker than earlier expected.
A pick up in wages growth would be a welcomed development.
Once the coronavirus is contained, the Australian economy is expected to return to an improving trend.
Australian government has also indicated that it will assist areas of the economy most affected by the coronavirus.
FX implications
The Aussie dollar popped over 30-pips vs. the US dollar on the RBA's unexpected interest rate cut decision, with AUD/USD reaching a new daily high at 0.6566.
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