RBA Governor Philip Lowe said together that “restoring confidence on the health front is a precondition for a strong recovery. “We might get a vaccine, we might get some anti-viral medication, but it’s also possible that we don’t. So we have an incredible lot riding on the work of the scientists.”
Looking ahead, “one obvious source of uncertainty is the pace at which the various restrictions are eased. Another source of uncertainty is the level of confidence that people have about their future, both in terms of their health and their own finances.
He added that the central bank was prepared to scale up the bond purchases if necessary. However, it was “extraordinarily unlikely” to cut interest rates into negative.
