The RBA held rates at 0.25 per cent.
The RBA’s usual monthly meeting comes after an emergency rate cut in late March, when the bank also launched Australia’s first quantitative easing program.
“The board is committed to doing what it can to support jobs, incomes and businesses as Australia deals with the coronavirus,” said RBA governor Philip Lowe.
“The comprehensive policy package announced last month will also support the expected recovery. The board will not increase the cash rate target until progress is being made towards full employment and it is confident that inflation will be sustainably within the 2-3 per cent target band.”
It is now likely that rates will stay at 0.25 per cent for the foreseeable future, given that the RBA views this as their “effective lower bound”.
“There is little benefit to be gained by going to zero or negative based on the experience of Europe and Japan,” said AMP Capital chief economist Shane Oliver.
