BREAKING: The Reserve Bank has kept the interest rate at 0.25 per cent as the country grapples with the economic fallout from the coronavirus.
In a statement, Governor Philip Lowe said the Board had reaffirmed the targets for the cash rate and the yield on three-year Australian government bonds of 25 basis points, as well as the other elements of the package announced on March 19.
But he said there were “some signs that markets are working more effectively than they were a few weeks ago” which “partly reflects the substantial measures undertaken by central banks”. “The comprehensive policy package announced last month will also support the expected recovery,” he said. “As such, the focus of RBA meetings will be on how the board assesses its QE measures and whether they may require adjusting,” Westpac said in a note on Monday.
The RBA Shadow Board, based at The Australian National University, said it was “94 per cent confident that keeping the cash rate on hold is the right policy”. “It is unclear to what extent the Government’s JobSeeker program will help workers remain attached to their employers.
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