Reserve Bank of Australia April 7 monetary policy board meeting
- board remained committed to supporting jobs, incomes and businesses
- Australian financial system remained resilient
- coordinated monetary and fiscal response would soften expected economic contraction
- frequency of longer terms bond operations to be adjusted as necessary according to market conditions
- various responses were providing considerable support to Australian households and businesses
- likely that smaller and less frequent purchases of government bonds would be required
- the policy package had helped to lower funding costs and stabilise financial conditions
- to do what was necessary to achieve the three-year yield target
- the bank would continue to do what was necessary to achieve the three-year yield target
- deferrals and cancellations of business investment plans had been a theme in discussions with liaison contacts
- these effects on GDP were expected to be partially offset by stronger public demand and the introduction of income support measures
- although jobkeeper subsidy was expected to increase the number of people remaining employed, household incomes were expected to be much lower
- household consumption spending was expected to be much lower than usual in the June quarter
- it was unlikely that support packages would provide a strong boost to spending in the near term given the broadening shutdown of non-essential activities and the restrictions placed on household activities
Headlines via Reuters
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