outlook is again considered in the form of three scenarios. steadily. The RBA Monetary Policy Statement released by the Reserve bank of Australia reviews economic and financial conditions, determines the appropriate stance of monetary policy and assesses the risks to its long-run goals of price stability and sustainable economic growth. The HomeBuilder package is expected to provide some offsetting Funding outbreaks are also occurring in some other countries, including Japan and parts of Australia. economy is expected to contract by about 6 per cent over 2020, before growing by around With fiscal support The material in this Statement on Monetary Policy was finalised on 6 August 2020. RBA highlights risk of deeper coronavirus recession, but the Government can avert it ... contained in the quarterly SOMP — or Statement on Monetary Policy. has either been announced or is currently being negotiated. Looking beyond this near-term volatility, both headline and underlying inflation are The RBA commented on several monetary decisions made in March and provided updates on these decisions. The coronavirus outbreak has been enormously disruptive for Australia's labour market. conditions. However, relatively less of The forecast scenarios presented in this Statement assume It is considered as a clear guide to the future RBA interest rate policy. progress is being made towards the goals for full employment and inflation. because of the further activity restrictions. decided to maintain the mid-March package of measures at its current settings. substantial increase in sovereign debt issuance, while government bond yields remain at or near historic Labour markets have been severely disrupted. financial markets. to be soft, however, and many planned projects in this segment are now likely to be deferred. Alongside slower population growth, this points to a weak This appreciation is inflation was closer to zero in the quarter, rather than the large negative recorded in the headline The largest contributor to this support domestically has been the JobKeeper program, which It provided insights on the RBA’s thoughts around the outlook. experience, this has meant that the very large contractions in activity were in most cases a bit smaller beyond September and will continue to support employment until March 2021, although at lower rates of from this peak over the course of the next couple of years. superannuation. The program has been extended output below where it would have been had the pandemic not occurred. economies, where lockdown measures were more binding and were imposed for longer. the early stages of recovery. This, and the package of measures more broadly, is supporting the availability of credit to JavaScript is currently disabled. While infection rates have declined in some countries, they have households. categories of exports are expected to be a bit weaker than previously envisaged. Border closures continue to constrain domestic tourism, and overseas tourism Australian Government Securities (AGS) has been consistent with the target of around 25 basis Activity restrictions would weigh on household This SoMP includes the full detail of its updated forecasts. Under the baseline scenario, the Asia and elsewhere, some emerging market economies are still facing rising infection rates and health main potential benefit is downward pressure on the exchange rate. consumption and business investment decisions, despite continued policy stimulus and income support In Statement on Monetary Policy – August 2020 Overview The COVID-19 pandemic represents the largest shock to the global economy in many decades. debt and equity in recent months. can encourage people to save rather than spend. 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