FXStreet reports that David Plank, Head of Australian Economics at ANZ Bank, recaps the speech of the Reserve Bank of Australia (RBA) Governor.

"The Governor's speech highlighted the near-term challenges for the economy, with output 'likely to fall by around 10 per cent over the first half of 2020'."

"Even with recovery, the RBA thinks 'it is likely that the unemployment rate will remain above 6 per cent over the next couple of years'."

"We think the recovery will likely take longer than what seems to be the Bank's central view, with unemployment remaining higher for longer. It will be the speed at which unemployment falls that determines how long the cash rate remains at 0.25%."