RBA: Negative rates look off the table (for now) – UOB
|Economist at UOB Group Lee Sue Ann reviewed the latest RBA meeting (December 1).
Key Quotes
“The Reserve Bank of Australia (RBA), at its final monetary policy meeting of the year, decided to retain the current policy settings, including the targets of 10 basis points for the cash rate and the yield on 3-year Australian Government bonds, as well as the parameters of the Term Funding Facility and the government bond purchase program.”
“Our view remains for the RBA to hold off (for now) in regards to bringing the policy rate into negative territory. If the need for more easing arises, more Quantitative Easing (QE) and yield curve control are likely to follow first. We also see fiscal policy continuing to play a key role in stimulating the economy and expect that the government will need to do more.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.