- Potential rate cut postponed to November’s meeting
- Australia annual budget release
The Reserve Bank of Australia (RBA) is due to announce their monetary policy decision tomorrow at 1130 (SGT). Back in September, RBA’s Deputy Governor Debelle said in a speech that the central bank is considering further interest rate cut as the outlook for inflation and employment is not consistent with its objective. This led to many speculations that the RBA is looking to cut interest rate in the near future, including Westpac’s Chief Economist Bill Evans who announced that they expect the RBA to reduce interest rates from 0.25% to 0.10% during the monetary policy meeting tomorrow.
Coincidentally, the Australia annual budget which was initially scheduled for release in March was postponed to tomorrow. With that, the RBA may very likely hold back any potential monetary easing measures until their next meeting in November. Doing so will allow the central bank to see what the government is offering to help improve the current COVID-19 situation. Furthermore, this will buy the central bank more time to evaluate the pandemic and economic conditions in Australia before deciding if they should carry out further monetary policy easing. Thus, we may be seeing a non-eventful monetary policy decision tomorrow.
Rate an article for points!