Reserve Bank of Australia meeting announcement due at 0330 GMT Tuesday, earlier previews:
- RBA November monetary policy meeting decision due Tuesday 3rd - preview
- ANZ preview the RBA meeting on November 3 - rate cut and more
- ING make "The case against a rate cut" from the Reserve Bank of Australia
- preview link here.
- And another preview here
Posting this now, in summary via Scotia:
- vast majority of economists expect a reduction from 0.25% to 0.1% and with the three-year government yield target being reduced accordingly
- The motivators to the call include Governor Lowe’s speech on October 15th as well as minutes to the October 5th meeting that said “As the economy opens up, members considered it reasonable to expect that further monetary easing would gain more traction than had been the case earlier.”
- Further, Assistant Governor Chris Kent remarked at his speech on October 20th (here) that “They could all go a little lower than they currently are” in reference to the cash rate and the 25bps 3-year bond target.
- RBA ... seems to be re-evaluating its estimate of the effective lower bound toward at least about zero. Either that or, more likely, markets have reassessed it for them and the RBA is following. To avoid tightening financial conditions compared to what is already priced, the RBA is bound to deliver what is asked of it by markets.
