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At a parliamentary event today, Reserve Bank Governor Philip Lowe is going to be quizzed about what the central bank intends to provide in the case that households and businesses will need additional measures of support through the coronavirus recession. 

It is the Parliament’s Economic Committee where a half-yearly update is being given with a prepared statement.

This will run close to 3 hours in a Q&A with the committee.

The prepared statement, key notes

  • RESERVE BANK OF AUSTRALIA GOV LOWE SAYS Q2 GDP LIKELY TO SHOW DROP OF AROUND 7%
  • 13-Aug-2020 17:40:00 – RBA GOV LOWE SAYS HIGH DEGREE OF UNCERTAINTY ABOUT THE OUTLOOK AND OUR ECONOMIC RECOVERY

more to come…

 

Market implications

This follows the latest jobless figures which have shown the number of people unemployed topped one million for the first time.

The jobless rate moved up to 7.5 % in July, even before the harsh Melbourne lockdowns took effect.

The RBA has predicted that the unemployment rate will hit 10% by the end of the year, and still be around 7% in two years.

The jobless rate was 5.1% before the virus entered Australia.

`more to come…