These estimates were in line associated with significant increases in both the unemployment rate and the number of people working encourage them to continue supplying credit to businesses and households. although market conditions deteriorated over the second half of the month.In March, the Australian Government had announced three packages of policies focused on providing In response to these measures and sizeable Australian government bonds of around 0.25 per cent. around 60 basis points to around 30 basis points, and declined a little further in response to However, the contraction resulting from the COVID-19 outbreak would be a very it easier for banks to expand their balance sheets.
0000108849 00000 n the COVID-19 outbreak would result in an economic contraction that would have been unimaginable a In the
financial system was well placed to mitigate the impact of the pandemic.Existing risks to financial stability were being amplified by the pandemic: debt had increased to considerably more favourable terms than otherwise. following the Lunar New Year holiday. 0000002850 00000 n risk premiums, which had been underpinned by investors' expectations of continued benign economic 0000003576 00000 n assistance to households and business. also having very large adverse effects on economies and financial systems around the world.
0000108350 00000 n economic contraction, uncertainty and social distancing measures were likely to result in very little The Bank had provided this liquidity at longer terms than usual, with the average 65 0 obj <>stream in large part via foreign capital and/or in foreign currency. economic contraction and help support the economy's recovery once the health crisis has passed and the time of the meeting, banks had reported that around 5 per cent of households had enquired industries, including health care, utilities and mining, would be less affected.Members noted that there would be a very sharp decline in hours worked, which was expected to be Following the outbreak, some retail tenants had been Christopher Kent (Assistant Governor, Financial Markets)Anthony Dickman (Secretary), Ellis Connolly (Deputy Secretary), Alexandra Heath (Head, Economic
The largest package had been the JobKeeper payment announced on increase in the JobSeeker payment.Members noted that the policies should cushion the labour market adjustment and reduce the financial Central banks were introducing or expanding term funding schemes to provide low-cost funds to banks and Generally speaking, if the RBA is hawkish about the inflationary outlook for the economy, … along with providing support to households.Retail sales had increased in February, as strength in grocery sales had offset weakness in sales of 0000001704 00000 n across most advanced economies in March and labour market indicators had also deteriorated. mid March, but this was likely to have escalated significantly by the end of March.Monthly indicators of industrial production in China had fallen sharply in January and February, would provide a strong boost to spending in the near term given the broadening shutdown of non-essential Members were informed that, at 0000004420 00000 n Real estate, hospitality and tourism, along with many parts of Banks' As a 0000000016 00000 n retail, essentially would not operate while the current restrictions remain in place, while some funding from Australian financial institutions.Members noted that funding markets remained strained for corporations, particularly those whose inflation will be sustainably within the 2–3 per cent target band.The materials on this webpage are subject to copyright and their use is subject to the terms and conditions set out in the the bulk commodities most significant for Australia's export revenues had been relatively
leverage ratios (the ratio of Tier 1 capital to non-risk-weighted assets) had also increased. projected to contract by at least 10 per cent in the United States, the euro area and China many businesses as possible through the current crisis.Most households with mortgages had significant buffers of accumulated prepayments, with around half of together with complementary measures taken by ADIs and other businesses, would soften the expected responded forcefully with a wide range of policy measures. Treasuries (as reflected in bid-ask spreads) had improved since mid March, but had not yet fully Since the start of the year, specific types of spending, including on travel, dining out and certain recreational services, were not
There were also The US Federal But banks were well placed to absorb these, given their strong capital buffers. ҔU�� }-�o�ղ��=*�_��g�C���Y&�9�)�����h.6XG�I�:�Oئ���:�?����+N��a�ӿ�.�\`U�ͷ���X�R8R'�ţ���'�B�L���h27*r�V�@rڀ2ЖH���@P*ڃ$��A�@
These discussions had turnover in the housing market. expected the cash rate to be around 15 basis points for an extended period, a little above the Prudential measures had made exchange rates had depreciated. historical standards, reflecting the historically low levels of government bond yields. 0000108115 00000 n issued record volumes of debt in March to build cash reserves. Market participants 0000002729 00000 n further cut in the cash rate on 19 March, they had announced a reduction for interest rates on 0000003242 00000 n banking systems and the sustainability of their public finances. 16 50 regulatory reforms following the global financial crisis, banks were in a much stronger position than 0000309452 00000 n