Citi with brief comments on the Reserve Bank of Australia

  • RBA is in wait and see mode
  • RBA is comfortable for now with the current level of monetary stimulus
  • Negative rates pretty much ruled out
  • We don't see a negative for the currency from a CB perspective for now.

Further on the Australian dollar, Citi say Risks to AUD are fat tailed:

  • second wave risks,
  • health disappointment,
  • US election
  • particular worry placed on the evolution of US/China relations and its relation to the presidential election

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The next RBA meeting is October 6