Coronavirus: Scott Morrison eyes new economic measures, in addition to $17.6bn stimulus

Scott Morrison is moving to support new measures, in addition to the $17.6bn stimulus package, ahead of parliament next week.

Treasurer Josh Frydenberg and Prime Minister Scott Morrison announce their stimulus package last week. Picture: AAP

Scott Morrison is moving to support new economic measures – in addition to the $17.6 billion stimulus package – ahead of parliament next week as the government ramps up emergency response restrictions.

Ahead of the national cabinet meeting on Tuesday night, the Prime Minister has held meetings with Josh Frydenberg and Mathias Cormann to consider additional fiscal measures.

With wider restrictions expected on enclosed gatherings and aged care visitations, the government’s expenditure review committee of cabinet is assessing the impacts of its public health crackdown on the economy and businesses.

Mr Morrison, who met with Health Minister Greg Hunt and Australian Medical Association president Tony Bartone on Monday before travelling back to Canberra tonight, is also holding rolling meetings with cabinet ministers in key sectors ahead of his meeting with state and territory leaders.

ANZ head of Australian economics David Plank said the “economic shock washing over” the economy was “unprecedented in modern times” and predicted the government won’t be able to wait until the May budget to announce further stimulus measures.

Mr Plank said “the government’s fiscal package is likely to be scaled up and additional fiscal support measures provided”.

“We had been assuming that the government would wait until the May 2020 Budget to announce additional fiscal measures, but with events moving so quickly something sooner seems possible.”

“During the GFC we saw a range of policy measures implemented beyond rate cuts, fiscal stimulus and QE,” Mr Plank.

“These ranged from bank guarantees to the direct provision of financial support. It is too early to say these sorts of policies are definitely on the way, but they may eventually need to be considered. Unless, that is, we are wrong about the scale of the economic impact – which would be a good mistake to make.”

The Reserve Bank of Australia this morning confirmed it was ready to pull the trigger on unconventional monetary policies, potentially as soon as this Thursday.

CBA senior economist Gareth Aird said he expects a rate cut to 0.25 per cent this Thursday.