RBA Expects Australian Economy to Contract Through Q2 2020 - Forex News by FX Leaders
RBA Expects Australian Economy to Contract Through Q2 2020

RBA Expects Australian Economy to Contract Through Q2 2020

Posted Tuesday, April 21, 2020 by
Arslan Butt • 1 min read

The latest monetary policy meeting minutes of the RBA reveal that the central bank estimates Australia’s economy to continue contracting through Q2 2020, while growth is expected to remain “subdued” in Q3. At its last meeting on April 7, RBA had held interest rates steady at 0.25%.

In addition, the central bank had committed to undertaking necessary measures to hold three-year government bond yields steady. Policymakers highlighted the sharp decline anticipated in business investment as a result of the shutdowns due to the coronavirus pandemic.

The Australian economy is also expected to suffer because of a steep fall in household consumption in the coming months. Additionally, exports from the services sector of the country are also forecast to reduce in the wake of the extended shutdowns across other countries worldwide as well.

Australia is expected to experience its first economic recession in 28 years in 2020 due to the pandemic. The government is planning to restart economic activity in the coming days as the number of coronavirus cases has reduced drastically in recent weeks.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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