The Reserve Bank of Australia monetary policy meeting is expected to result in further easing.
- 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
There is more at the preview I posted earlier, link here.
Scanning through some of the bank analyst notes, this via RBC:
- Q3 CPI ... adds pressure on the RBA to deliver further easing at its next board meeting on 3 Nov, especially given its recent shift in focus to actual rather than forecast inflation.
- the 19th consecutive quarter or almost 5 years that annual core inflation has been below the floor of the 2-3% target.
And, past this meeting:
- Given the degree of excess capacity amid an uncertain recovery, rising labour market slack and persistent low productivity, we think core inflation is likely to edge towards 1% in the coming quarters with a disinflationary pulse remaining. This will keep pressure on the RBA to deliver further easing beyond the next board meeting where expectations are higher for multiple measures.
Bolding is mine.