In the minutes of May 5 meeting, RBA said the labor market s was expected to have “ongoing spare capacity”. Inflation was expected to stay below 2% “over the following few years. The continue to keep funding costs low and credits available to households and businesses. The “best course of action” was to maintain the currency policy setting, and monitor economic and financial outcomes.
RBA added that while outlook remained uncertain, if coronavirus infection rates continued to decline and restrictions were eased, “recovery could be expected to start later in 2020”. At the same time, the “substantial, coordinated and unprecedented fiscal and monetary response” was “softening” the “very significant economic contraction”.
