RBA set to upgrade 2021 economic forecasts – MNI
|The Reserve Bank of Australia (RBA) may bump its 2021 forecasts for key indicators such as employment, in the wake of an earlier-than-expected global coronavirus vaccines rollout and Australia's relative success in containing the pandemic, MNI reports, citing unnamed sources familiar with the RBA’s thinking.
Key takeaways
“The RBA is prepared to provide more monetary stimulus if required, and the likely tools would be adding to the AUD100 billion program of quantitative easing buying Australian Government 5-10 year bonds.”
“Negative interest rates are still considered highly unlikely for Australia.”
“There is a view at the RBA that the potential for early global deployment of coronavirus vaccines is lessening the likelihood that other central banks, such as the Bank of England and even the Reserve Bank of New Zealand, will take rates negative.”
Market reaction
AUD/USD was last seen trading at daily lows of 0.7546, down 1% on the day. The aussie remains pressured by the relentless US dollar buying, as the risk-off mood remains at full steam on covid worries.
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.