Australian central bank’s policy optimism tested by lockdowns

Weighing options: A businessman passes the black granite wall of the Reserve Bank of Australia in Sydney. The central bank is thinking of trimming stimulus but has to reconsider now as coronavirus measures spread across the country. ― AFP

SYDNEY: Australia’s central bank was counting on the economy to keep surprising with its strength when trimming stimulus earlier this month, but might now be forced to reconsider as coronavirus lockdowns spread across the country.

Minutes of its July 6 policy meeting, showed the Reserve Bank of Australia (RBA) policy board considered economic outcomes had been “materially” better than expected, particularly in the labour market.