Australia's central bank lowered its key interest rate by 0.25%

Board decided to lower the cash rate by 25 basis points to 0.50 per cent.

The Board took this decision to support the economy as it responds to the global coronavirus outbreak.

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.

Prior to the outbreak, there were signs that the slowdown in the global economy that started in 2018 was coming to an end.

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.

Policy measures have been announced in several countries, including China, which will help support growth.

Inflation remains low almost everywhere and unemployment rates are at multi-decade lows in many countries.

Long-term government bond yields have fallen to record lows in many countries, including Australia.

The unemployment rate increased in January to 5.3 per cent and has been around 5¼ per cent since April last year.

Wages growth remains subdued and is not expected to pick up for some time.

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.