RBA meet next week - April 7 - preview (spoiler, likely to sit on their hands)
Reserve Bank of Australia monetary policy meeting coming up on Tuesday April 7
Only yesterday we got the minutes to the emergency meeting (the RBA called is a 'special' meeting).
RBC's note on the minutes also serves as a what to expect from next week's meerting (bolded):
- minutes … largely mirrored the detailed speech and press conference from the Governor the following day
- While the RBA has not released an updated set of macro forecasts, the minutes hinted at substantial revisions amid much uncertainty.
- The RBA noted that "Australia would experience a very material contraction in economic activity, which would spread across the March and June quarters and potentially longer." Coupled with a reluctance to take the cash rate into negative territory and the most recent large fiscal package, it suggests that the RBA is likely to sit on its hands for some time.