Reserve Bank of Australia outlook from DB, note that this is not a 'breaking' item - its part of the banks's response to the meeting earlier in the week.

DB note that the while the key takeaway from the announcement was the expansion and extension of the term funding facility, its

  • 1. not very stimulatory
  • and 2. it risks not being enough.

(bolding mine)

DB assess the moves ahead from the RBA (bolding is DBs this time) :

  • Lowering the cash rate and three-year AGS target to 0.1% now looks likely.
  • We expect that to be installed by February, but do not rule it out before the end of this year.
  • An expanded QE programme focussed on the five to ten year part of the AGS curve looks increasingly possible, though we fall short of including that in our baseline for now.
  • A negative cash rate looks increasingly less improbable. The RBA's self-imposed hurdle to a negative policy rate is high, but is not insurmountable. .. extended term funding facility helps remove some barriers ... The earliest we could see a negative policy rate being installed is mid 2021. But again, and despite our previously stated preference for a negative rate policy, we fall short of including that in our baseline for now.
Reserve Bank of Australia outlook from DB, note that this is not a 'breaking' item - its part of the banks's response to the meeting earlier in the week.