Only a week until the big day! (RBA monetary policy meeting November 3 - preview)
The Reserve Bank of Australia is expected to further loosen policy on Tuesday 3 November.
- Statement due at 0330GMT
- There is no press conference following, there never is but folks sometimes ask
A real quick what to expect (these are the consensus expectations):
- a 15bp rate cut to the cash rate, which will bring it to 0.1% from its current 0.25%
- also a 15 bp cut to its 3-year yield target and term lending facility (taking these also to 0.1%)
- a QE programme for the longer bonds, 5-to-10 years
As for the size of that QE programme, expectations I have seen are for in the order of 150bn to 200bn AUD. I'd be wary of a program towards the lower end of that scale, if not smaller than that lower expectation. The RBA is notoriously optimistic and may err to a smaller program initially. A conservative amount, sub 150bn, would likely see a bounce for AUD upon announcement.