[ad_1]
FILE PHOTO: Two women walk past the Reserve Bank of Australia headquarters in central Sydney, Australia on February 6, 2018. REUTERS / Daniel Munoz / File Photo
SYDNEY (Reuters) – Australia’s central bank is sure to keep its cash rate at a record low of 0.25% at its May 5 meeting with a policy that is likely to remain unchanged until the end of 2021, according to a poll by Reuters of 23 economists.
The Reserve Bank of Australia (RBA) predicted that the country would experience its biggest economic contraction since the 1930s in the first half of this year due to containment measures to stem the spread of the coronavirus.
To mitigate the economic shock, the RBA cut rates to record lows in March and launched an “unlimited” quantitative easing program aimed at keeping three-year bond yields at 0.25%.
RBA Governor Philip Lowe has repeatedly said the bank would not lower rates.
The Reuters poll showed that all but one of the 23 surveyed economists expect the RBA to keep rates stable until at least the end of 2021.
Editing by Shri Navaratnam
