Bob Reus & Co

The RBA has announced that they will be easing monetary policy, dropping the official cash rate to a new record low, 0.50%. This follows the bank’s last record breaking cut to 0.75% in October last year.  The move is believed to be a direct response to January’s unemployment figures, as well as the on-going economic impact of the Coronavirus outbreak. According to new ABS Labour Force data there has been a growth in unemployment.  While in December we saw a well-received drop (5.1%), over January it has moved back in the wrong direction, increasing by 0.2pts to 5.3%. Meanwhile the Coronavirus outbreak does not appear to be getting any better.  Coronavirus is already severely affecting the tourism and education sectors.  At a conference in Canberra last week, Prime Minister Scott Morrison acknowledged the threat the virus could have on Australia now that it is so widespread. “We believe the risk of a global pandemic is very much upon us,” he sa...