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- Australia's central bank lowered its key interest rate by 0.25%
Australia's central bank lowered its key interest rate by 0.25%
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Board decided to lower the cash rate by 25 basis points to 0.50 per cent.
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The Board took this decision to support the economy as it responds to the global coronavirus outbreak.
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The coronavirus has clouded the near-term outlook for the global economy and means that global growth in the first half of 2020 will be lower than earlier expected.
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Prior to the outbreak, there were signs that the slowdown in the global economy that started in 2018 was coming to an end.
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It is too early to tell how persistent the effects of the coronavirus will be and at what point the global economy will return to an improving path.
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Policy measures have been announced in several countries, including China, which will help support growth.
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Inflation remains low almost everywhere and unemployment rates are at multi-decade lows in many countries.
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Long-term government bond yields have fallen to record lows in many countries, including Australia.
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The unemployment rate increased in January to 5.3 per cent and has been around 5¼ per cent since April last year.
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Wages growth remains subdued and is not expected to pick up for some time.
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A gradual lift in wages growth would be a welcome development and is needed for inflation to be sustainably within the 2-3 per cent target range.
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