Friday, 05 June 2020
Jakarta
--:--
Tokyo
--:--
Hongkong
--:--
New York
--:--
Australia Faces 'Unprecedented' Economic Hit from Coronavirus: RBA Minutes
Tuesday, 19 May 2020 09:53 WIB | FISCAL & MONETARY |RBA

Australia is facing an "unprecedented economic contraction due to the coronavirus pandemic, though massive fiscal and monetary stimulus would help cushion the blow, minutes from the country's central bank's last meeting showed on Tuesday.

The Reserve Bank of Australia (RBA) had on May 5 left the cash rate at 0.25%, as expected, and recommitted to buying as much government debt as needed to keep three-year bond yields near 0.25%.

The minutes showed board members discussed a range of economic scenarios in their policy deliberations, with the baseline case for gross domestic product to fall by 10% in the first half and 6% for all of 2020.

"An economic contraction of such speed and magnitude would be unprecedented in the 60-year history of Australia™s quarterly national accounts, the RBA said.

"Members noted that the nature of the contraction and the expected recovery was also unprecedented because they were driven by public health measures, rather than induced by economic or financial factors.

Australia has not suffered a technical recession, or two consecutive quarters of contraction, since the early 1990s.

The country has been so far successful in curbing the growth of the coronavirus, helping it gradually re-open its economy although international borders are expected to remain shut for a long time to come.

Despite the earlier than expected reopening of the domestic economy, unemployment was expected to remain elevated through 2021 while inflation was seen undershooting the RBA's 2-3% medium-term target for the next few years.

"Given this outlook, the Board would maintain its efforts to support the economy by keeping funding costs low and credit available to households and businesses, the RBA added.

Source : Reuters

RELATED NEWS
ECB Expands PEPP Asset-Buying Program To 1.35 Billion Euros...
Thursday, 4 June 2020 19:11 WIB

The European Central Bank, as expected, boosted the size of its Pandemic Emergency Purchase Program on Thursday. The ECB said the envelope for asset purchases was increased by 600 billion euros ($674...

Australia Central Bank Pins Hope on Quicker Economic Recovery After Pandemic Shutdown...
Tuesday, 2 June 2020 13:25 WIB

Australia™s central bank held rates at all-time lows on Tuesday and sounded less gloomy as the economy gradually re-opens during what is likely to be the worst quarter since the Great Depression. T...

Powell Says The Fed is 'Days Away' from Making The First Loans in The Main Street Lending Facility...
Friday, 29 May 2020 22:56 WIB

Federal Reserve Chairman Jerome Powell said the central bank's long-awaited program to lend to small- and medium-sized businesses is about to get off the ground. The Main Street lending facility, whi...

RBA : Australia Economic Downturn To Be Less Severe Than Initially Feared...
Thursday, 28 May 2020 10:06 WIB

Australia™s central bank chief said on Thursday that better-than-feared health outcomes from the COVID-19 pandemic suggest the country™s economic downturn will likely not be as severe as earlier t...

RBA's Lowe: Australian financial system is resilient and is well placed to deal with COVID-19...
Thursday, 21 May 2020 09:53 WIB

Reserve Bank of Australia (RBA) Governor Philip Lowe is on the wires now, via Reuters, speaking on a panel at FINSIA's "The Regulators" Webinar. "Australian financial system is resilient and is well ...

LATEST NEWS
U.S. Jobless Rate Unexpectedly Fell in May as Hiring Rebounded

America labor market unexpectedly rebounded in May, signaling the economy is picking up faster than thought from the depths of the damage from the coronavirus pandemic. Nonfarm payrolls rose by 2.5 million after a 20.7 million tumble the...

Gold Prices Head Lower for The Day and Week as Investors Watch Jobs Report

Gold futures fell on Friday morning, amid a global rally in stocks that was dulling the appeal for the yellow metal. August gold on Comex shed $18.70, or 1.1%, at $1,708.70 an ounce, nearly giving up all of its gains from the previous...

Oil Prices Rise as OPEC+ Seen Setting Stage for Weekend Meeting

Crude-oil futures climbed Friday morning, supported partly by reports that major oil producers are tentatively expected to convene over the weekend to outline plans to extend productions cuts. The Organization of the Petroleum Exporting Countries...

POPULAR NEWS
Gold futures post second straight loss
Wednesday, 3 June 2020 01:24 WIB

Gold futures on Tuesday posted a second consecutive session decline, with profit-taking and strength in global stock markets the key reasons cited...

Gold marks first gain in 4 sessions on weakness in U.S. dollar and stocks
Friday, 5 June 2020 01:29 WIB

Gold futures rose on Thursday, with prices posting their first gain in four sessions on the back of weakness in the U.S. stock market and the...

Gold futures down a third straight session
Thursday, 4 June 2020 01:03 WIB

Gold futures marked a third straight session decline on Wednesday, posting their lowest settlement in more than three weeks. Strength in the U.S....

Gold Under Pressure as Investors Snap Up Stocks, Dulling Demand for Havens
Wednesday, 3 June 2020 19:25 WIB

Gold lost ground Wednesday, unable to find traction higher as demand for equities dulls haven-related demand for the precious metal. Gold for...