RBA dep gov Debelle: "Just too uncertain" to asses coronavirus impact beyond Q1

Reserve Bank of Australia Deputy Governor Guy Debelle

• says coronavirus causing large increase in risk aversion, uncertainty
• says lower interest rates to help offset demand shock from virus
• says recent fall in AUD will provide a helpful boost to economy
• says government stimulus package will provide welcome support to economy
• combined fiscal and monetary policy will help navigate a difficult period
• says the effect of the virus will come to an end at some point
• repeats impact of virus on tourism, education to take 0.5ppt from Q1 GDP
• says too uncertain to assess impact of the virus beyond March quarter
• Australian banking system well capitalised, in a strong liquidity position
• Have not seen any particular sign of pressure in our daily market operations
• Liaison indicates no material disruption to exports of iron ore and coal at this stage
• Says global economy will be materially weaker in q1 and period ahead