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Australia’s economic contraction may come milder than previously thought, completely disregarding the possibility of negative interest rates or quantitative easing measures, the Reserve Bank of Australia said on Thursday.
Though the country has started lifting lockdowns, the overall economic outlook is still dim. The land down under had seen dire inflation rate and unemployment surge, prompting the RBA to retain its interest rate at a record low of 0.25%.
Earlier this month, the country’s central bank forecast that the economy would recede by 6% this 2020. More so, it placed its unemployment forecast to 9% while the inflation rate is predicted to land below its medium-target of 2-3%. However, RBA Governor Philip Lowe confirmed that the released figures fared better than the set parameters.
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