RBA kept the policy rate unchanged this week – UOB

Oct 6, 2021

 

Economist at UOB Group Lee Sue Ann assesses the latest RBA event (Tuesday).

Key Quotes

“As expected, the Reserve Bank of Australia (RBA), at its October meeting, decided to:  maintain the cash rate target at 0.10% and the interest rate on Exchange Settlement balances of 0%; maintain the target of 0.10% for the April 2024 Australian Government bond; continue to purchase government securities at the rate of AUD4bn a week and to continue the purchases at this rate until at least mid-February 2022.”

“We continue to see QE tapered from February 2022. By then, we think the rebound in the economy will be evident. This will see the total QE program from September at around AUD130bn, with tapering to occur progressively before ending in mid to late 2022. In the meantime, the RBA’s balance sheet continues to soar.” 

“As for the cash rate target, we still expect that the first rise will occur only in early 2024.”

Courtesy of the Forex Mix