Reserve Bank of Australia deputy governor Guy Debelle believes the strength of the Australian economy would have offset the negative impact of the COVID-19 lockdown in Victoria.
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Speaking ahead of next week's central bank board meeting and its quarterly statement on monetary policy, Dr Debelle said the drag from Victoria on the national economy could have been a little less than earlier forecast.
Dr Debelle told a Senate estimates hearing the RBA's best guess at the moment is the country is reporting positive growth rather than slightly negative.
"The strength elsewhere in the country was more than the drag from Victoria," Dr Debelle said.
"Possibly the drag from Victoria was a little less than we guessed back in August," he added, referring to the central bank's previous quarterly statement on monetary policy.
Economists expect the central bank will cut the cash rate, the three-year bond yield target and the term funding facility rate for banks from 0.25 per cent to 0.10 per cent at the November 3 board meeting.
There is also speculation the Reserve Bank will extend its bond-buying program to five to 10 year bonds in a further attempt to keep market interest rates low, otherwise know as quantitative easing or QE.
Dr Debelle declined to comment on the QE speculation ahead of the board meeting.
Australian Associated Press