Westpac on what the RBA is waiting for in October
Latest from WPAC on the RBA (in brief):
- has been some market speculation that the Board is set to cut the overnight cash rate from 0.25% to 0.1% ... Westpac expects that such an option will remain under consideration but there appears to be no urgency.
- it appears that the Reserve Bank will be focussed on supporting government bond markets, including the borrowings of state and territory governments, as it continues to promote stimulatory fiscal policies to boost Australia's growth rate
- In that regard, no doubt, the Bank will be expecting an expansionary Budget from the Federal authorities on October 6.