The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Untitled design (8)
FIRST RELEASE TICKETS ON SALE FOR URBANITY-25 CONNECTING PROPERTY LEADERS ACROSS THE ASIA PACIFIC
FIRST TICKETS ON SALE FOR URBANITY-25 WHERE THE PROPERTY INDUSTRY CONNECTS
SEE DETAILSDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
3
print
Print
ResidentialDinah Lewis BoucherTue 03 Mar 20

RBA Cuts as Coronavirus Clouds Outlook

64bd74dd-271a-4133-ad70-3634580cd73d

The spectre of the coronavirus outbreak loomed large over the Reserve Bank’s meeting on Tuesday, with the board cutting the cash rate by 25 basis points to a record low 0.50 per cent.

With uncertainty remaining as to how persistent the effects of COVID-19 will be, Lowe said the board had taken the decision to help protect the economy.

“The coronavirus outbreak overseas is having a significant effect on the Australian economy at present, particularly in the education and travel sectors,” Lowe said.

“The uncertainty that it is creating is also likely to affect domestic spending.”

With the virus clouding the near-term outlook for the global economy, meaning global growth in the first half of 2020 will be lower than expected, the move is in line with policy measures announced in several countries, including China, to help support growth.

Lowe said the unpredictable nature and duration of the “evolving situation” made it difficult to predict how large and long-lasting the effect will be.

“The global outbreak of the coronavirus is expected to delay progress in Australia towards full employment and the inflation target,” Lowe said.

“The board therefore judged that it was appropriate to ease monetary policy further to provide additional support to employment and economic activity.”

Commsec chief economist Craig James said today’s decision was “all about the coronavirus”, with the ball now firmly in the Australian government’s court in terms of outlining a fiscal response.

“The Reserve Bank is all but spent—it is debatable that today’s 25 basis point move will do much to boost growth,” James said,

“The Australian government has more firepower given that the budget is broadly balanced. The aim must be to prevent the economy from slipping into recession – an event that would have longer-lasting effects.”

The Reserve Bank remains positive about future prospects for the economy once the coronavirus is contained, with Lowe predicting a return to “an improving trend”.

“This outlook is supported by the low level of interest rates, high levels of spending on infrastructure, the lower exchange rate, a positive outlook for the resources sector and expected recoveries in residential construction and household consumption,” Lowe said.

Lowe said that the Reserve Bank would continue to monitor developments closely and assess the implications of the coronavirus for the economy.

“The board is prepared to ease monetary policy further to support the Australian economy.”

Australia's big four banks responded immediately to the decision, with major lenders CBA, NAB, ANZ and Westpac all announcing interest rate cuts.

HotelIndustrialRetailResidentialAustraliaFinancePolicySector
AUTHOR
Dinah Lewis Boucher
More articles by this author
ADVERTISEMENT
TOP STORIES
Darwin has sat dormant for a decade but the resource rich territory is “on the threshold” of a boom for resources and new cities. Weddel and Palmerston
Exclusive

NT Eyes Looming Boom as Planning Commissioner Bows Out

Renee McKeown
5 Min
Exclusive

Gold Coast’s Greatest Moments Yet to Come: Evan Raptis

Phil Bartsch
7 Min
MODEL founder Rory Hunter HERO
Exclusive

‘It’s Massive’: On Mission to Prove BtR Green Equals Gold

Leon Della Bosca
8 Min
Potts Point Coliving EDM
Exclusive

Co-Living Shrugs Off Stigma as Overseas Money Moves In

Clare Burnett
6 Min
Bankstown cbd in Sydney NSW EDM
Exclusive

Breaking Delivery Crisis Chokehold on NSW’s Biggest Housing Market

Vanessa Croll
7 Min
View All >
Darwin has sat dormant for a decade but the resource rich territory is “on the threshold” of a boom for resources and new cities. Weddel and Palmerston
Exclusive

NT Eyes Looming Boom as Planning Commissioner Bows Out

Renee McKeown
Kemps Creek Penrith EDM
Industrial

Frasers $281m Penrith Warehouse Precinct Greenlit

Clare Burnett
East Walker St Aland EDM
Residential

Aland Scoops Up $240m North Sydney ‘Dream’ Site

Clare Burnett
A trio of development heavy-hitters this year won approval for two towers up to 30 storeys on the site…
LATEST
Darwin has sat dormant for a decade but the resource rich territory is “on the threshold” of a boom for resources and new cities. Weddel and Palmerston
Exclusive

NT Eyes Looming Boom as Planning Commissioner Bows Out

Renee McKeown
5 Min
Kemps Creek Penrith EDM
Industrial

Frasers $281m Penrith Warehouse Precinct Greenlit

Clare Burnett
3 Min
East Walker St Aland EDM
Residential

Aland Scoops Up $240m North Sydney ‘Dream’ Site

Clare Burnett
3 Min
Paradiso Place Surfers Paradise hero
Residential

Surfers Paradise $1bn Triple-Tower Project Feasibility Juggle

Phil Bartsch
4 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/rba-cuts-interest-rates