RBA May 2020 - Rates kept on hold at 0.25%

Lucy Dean reports for Yahoo Finance AU with “RBA makes May interest rate decision”:

The Reserve Bank of Australia (RBA) has kept rates on hold at its record low of 0.25 per cent as Australia continues to battle with coronavirus’ impact on the economy. 

It was only to be expected even though we are locked down in a pandemic where the unemployment rates are skyrocketing.

“The cash rate is as low as it's going to go, and the next move in rates will be up but it's at least three years away, probably more,” AMP Capital chief economist Shane Oliver told the Finder cash rate survey.

“Based on the experience of other countries, there is no value in taking rates negative. So any further easing in monetary policy will have to come from quantitative easing. In the meantime the coronavirus related shutdown will cause a big hit to growth that will take years to fully recover from.”

Sobering thoughts.