(Reuters) – Australia’s financial regulators scheduled an emergency call on Monday to discuss the impact of the coronavirus outbreak, two sources familiar with the matter told Reuters, as the country looks to avoid a risk of recession.
The conference call, involving the country’s prudential regulator, markets watchdog and central bank, comes as markets now expect the Reserve Bank of Australia (RBA) to cut its cash rate as early as Tuesday at its scheduled monthly review. [AU/INT]
The epidemic in China – Australia’s No.1 trading partner – is having an outsized impact Down Under with a travel ban hitting the tourism and education sectors and having spillover effects on overall spending.
There are now 30 confirmed cases in Australia and the nation’s chief medical officer warned on Monday it was no longer possible to completely prevent people with the coronavirus from entering the country.
If the RBA eases policy, as expected, it will become the first central bank in the developed world to respond to the coronavirus, with the U.S. Federal Reserve and the Bank of Japan also standing ready to act.