Reserve Bank of Australia decision and Lowe's statement due at 0430 GMT on Tuesday 4 August 2020

I posted on previews earlier (scroll down to the bottom of this post for the links). Scanning across some notes for more.

Via TD:

  • target cash rate should remain at 0.25% given the Minutes of the July meeting stated there is 'no need to adjust the package of policy measures in Australia in the current environment'
  • Otherwise on Tuesday the market will look to get a flavour of the Bank's latest set of forecasts for GDP, CPI and unemployment that will be published on Friday. Luci Ellis speech post SoMP

Staying with the Canadians, via Scotia:

  • No policy changes are anticipated with the cash rate staying at 0.25% along with the three year yield target.
  • RBA Governor Lowe's recent speech combined with the minutes to the July 7th meeting leaned against negative rates, A$ intervention and direct financing of government and resisted putting a range to the 0.25% 3 year target that would result in bond buying to enforce the target by instead saying it was a judgement call.
  • The government extended the wage subsidy program from the end of September to the end of March which takes some pressure off the central bank.

Earlier:

Reserve Bank of Australia  Lowe