At the Reserve Bank of Australia’s monthly meeting on 7 April 2020, the Coronavirus health issue was discussed and its significant impact on economies and financial systems around the world. As we and other countries have experienced large economic contractions, there will be a large increase in unemployment. 

It was further reported that ‘There is considerable uncertainty about the near-term outlook for the Australian economy. Much will depend on the success of the efforts to contain the virus and how long the social distancing measures need to remain in place. A very large economic contraction is, however, expected to be recorded in the June quarter and the unemployment rate is expected to increase to its highest level for many years’.

At this point in time, the cash rate will remain at 0.25%, its lowest in history, and the Reserve Bank will continue to assess the situation to support jobs, incomes and businesses as Australia deals with the coronavirus epidemic.