Australia: No changes from the RBA – UOB


Economist at UOB Group Lee Sue Ann assesses the latest RBA monetary policy meeting.

Key Quotes

“The Reserve Bank of Australia (RBA), as expected, decided to maintain the current policy settings at its April meeting, including the targets of 10 basis points for the cash rate and the yield on the 3-year Australian Government bond, as well as the parameters of the Term Funding Facility and the government bond purchase program. In January, the RBA had surprised financial markets with an announcement that it was extending its QE program by a further AUD100bn.”

“In the months ahead, the RBA is due to decide whether to keep the April 2024 bond as the bank’s Yield Curve Control (YCC) target, or to roll over to the November 2024 maturity. RBA Governor Philip Lowe reiterated … that the board will consider whether to do this later in the year. He also noted that the RBA’s first AUD100bn of longer-dated bond purchases is almost complete and the second program of the same amount will begin next week. In the meantime, the RBA’s rhetoric continues to reinforce our view that it will hold off bringing the policy rate into negative territory. Given the notable lags between economic activity and the labour market, and then from the labour market to inflation; we also believe any tightening in policy will not be warranted for some time, which is in line with the RBA’s own outlook.”

“As such, we continue to expect the cash rate to remain unchanged until 2024 and expect a full AUD100bn extension of QE beyond the second round. That said, we think that YCC may not be extended past the April 2024 bond, with the RBA no longer able to credibly commit to rates staying at 0.1% beyond this point.”

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.

Feed news

Get Weekly Crypto trade ideas!  
Empower yourself with the best market insights

Join FXStreet Premium!    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD: Bulls need to cross 1.2060 to keep the reins

EUR/USD stays on the front foot, recently inactive, near seven-week top. 100-day SMA tests the upside break of the key resistance line, now support. Bullish MACD, sustained trading above 200-day SMA favor buyers.

EUR/USD News

GBP/USD: Refreshes monthly top, inches closer to 1.4000 ahead of UK employment data

GBP/USD bulls refrain from catching a breather after rising the most since January 12. The cable rises for the seventh consecutive day, needless to mention the previous day’s heaviest run-up in over three months. Traders seem to wait for the UK’s employment figures for March for fresh impulse.

GBP/USD News

EUR/USD: Bulls need to cross 1.2060 to keep the reins

EUR/USD stays on the front foot, recently inactive, near seven-week top. 100-day SMA tests the upside break of the key resistance line, now support. Bullish MACD, sustained trading above 200-day SMA favor buyers.

EUR/USD News

DOGE base targets at least 30% upside

Dogecoin price declined almost 50% from the April 16 high to the April 17 low, reminding speculators that DOGE did have two sides. Since the price low, the altcoin rallied close to the all-time high at $0.4532 by April 19. 

Read more

The 3 currencies to watch this week

All of the major currencies traded higher on Monday as investors continued to drive the U.S. dollar lower. When a rise in Treasury yields, sell-off in U.S. stocks, strong payrolls and retail sales reports can’t lift the dollar, some wonder if it is time to worry.

Read more

Forex MAJORS

Cryptocurrencies

Signatures