I would recommend that at this meeting the cash rate be reduced to 0.5%. Underlying measures of inflation have been persistently below 2 per cent increasing the risk that inflation expectations will anchor outside the inflation target over time. Indeed, over 2019 measures of long-run inflation expectations have been gradually falling and currently sit below target. The Bank should start responding more aggressively to inflation developments than it has in the recent past. In addition, the increasingly negative outlook surrounding the coronavirus virus means a rate cut is likely to be necessary now.