SYDNEY (Reuters) – Australia’s economy could shrink “significantly” in the June quarter and remain “subdued” through September due to the hit from the coronavirus pandemic, minutes of the country’s central bank’s April 7 policy meeting showed on Tuesday.
The Reserve Bank of Australia (RBA) had this month left the cash rate at 0.25% and pledged to do “what is necessary” to keep three-year government bond yields around that level.
The minutes showed board members discussed deferrals and cancellations of business investment plans. Household consumption was also expected to be downbeat, and services export would take a hit for months assuming current border controls stay in place for some time.
(Reporting by Swati Pandey)