ANZ preview the RBA meeting on November 3 - rate cut and more
The Reserve Bank of Australia monetary policy meeting is next week.
In summary from ANZ :
- A rate cut to 0.1%, with the 3y yield target, and the rate on the term funding facility (TFF) cut to the same level.·
- A cut in the interest rate on excess reserves (IOER) to what could be 0.05% but is increasingly looking like 0.01%.·
- The introduction of 'pure' QE on the 5y-10y part of the yield curve, targeting both federal and state bonds. We expect the RBA to announce AUD100bn of purchases over the period to June 2021, but there are a range of options it might choose.