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There isn’t a significant expectation of a major change in policy after the RBA’s meeting, which concludes tomorrow. However, we still should approach the event – especially the policy statement – with a certain amount of caution.
A lot has happened since the last meeting. And the RBA might make some tweaks to their expectations that could influence the markets.
There is a unanimous consensus, both among Australian economists as well as global ones, that the RBA will hold rates at 0.25%.
There is no scheduled press conference afterward, which serves as confirmation.
What We Should Pay Attention To
Expectations are for the RBA to be cautious about the country’s economic outlook, which will reassure traders that interest rates will remain low for a long time.
There are two key things that we need to pay attention to:
1. Negative rates
So far Lowe and other members of the committee have said that negative rates might be necessary, but not yet. Given recent de...
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