NAB expects further RBA easing as soon as the first week of October
National Australia Bank says it sees significant risk of the RBA easing policy further by cutting the cash rate, 3-year yield target and TFF rate by 15bps to 0.10% (from 0.25%).
- We also expect the RBA to announce outright QE purchases in the 5-10 year area of the curve, so as to lower longer-dated rates to provide stimulus via the portfolio rebalance effect/a lower $A.
NAB expects these further easing measures to be announced at either the October or November Board meetings.
Note, the October meeting is on the 6th. Less than 2 weeks away.