The Reserve Bank of Australia decision is due at 0430gmt on Tuesday 01 September 2020.
Earlier preview here:
Expectations are that the Bank will:
- leave the cash rate on hold at 0.25%
- leave the bond purchase program unchanged (that is, the target for the 3 year Australian government bond will be left at 0.25% also)
- leave the liquidity program unchanged
In short - no change to policy is expected. And I expect comments on the economy and policy to be barely changed also, although there may be a further acknowledgement of the negative impact from the second lockdown in Australia's #2 city of Melbourne.
Perhaps one thing that might change is any commentary on the Australian dollar. The RBA has said they think its a bit high, and also say there is little they can do about that. It touched 0.74 overnight (just above), which will further perturb the Bank. Its not just the hapless USD that AUD is rising against either, its broader-based strength. The risk is the RBA mention 'excessive' strength, or some such, which, if it drops the AUD, will present the bulls with an opportunity to load up on more.
At 0430GMT, get Lowe:
