Today’s statement by the Reserve Bank highlights the profound and long-lasting economic impacts of the virus outbreak, and the need for ongoing fiscal support.

Whatever the National Accounts tell us tomorrow about the first three months of the year, we know that the economy has significantly deteriorated since then. 

According to the RBA, “The Australian economy is going through a very difficult period and is experiencing the biggest economic contraction since the 1930s.”

The Governor reiterated his concerns that the “pandemic is likely to have long-lasting effects on the economy” and warned against a rapid withdrawal of support, noting that “It is likely that this fiscal and monetary support will be required for some time.”

A sudden withdrawal of support for the economy in the last week of September makes no sense at all.

The less done now to protect jobs and support vulnerable workers, business and communities in the coming months, the harder and longer the recovery will be.

Australians desperately need an effective, well-executed response to this crisis, and a plan to bolster the recovery and set Australia up for the future.

While the Reserve Bank is doing its bit to support the economy, the Morrison Government is putting the recovery at risk through their bungling of key programs like JobKeeper. 

TUESDAY, 2 JUNE 2020