RBA Lowe: Mid March package is working and building a bridge to recovery

Reserve Bank of Australia Governor Phillip Lowe is appearing before the Senate Select Committee on COVID-19 (linked attached).

Key comments

It is possible economic downturn will not be as severe as feared

Much will depend on whether confidence can be restored.

Confident that the inflation target band will be met of 2-3%, but it will be some time away. 

Some pick up in employment in industries most affected by the shutdown - that's good news. 

We could see weakness in construction and professional sevices.

 

More to come...