RBA Minutes: No appetite for negative interest rates
The Reserve Bank of Australia is publishing the minutes of its ad hoc meeting on 18 March and have provided colour around the 25bp rate cut and the adoption of QE.
RBA Minutes
- Members acknowledged that the term funding scheme and the three-year bond yield target were both significant policy developments.
- Members strongly supported the proposed policy response as a comprehensive package.
- Important to emphasise that the bank expected a recovery once the COVID-19 outbreak has been contained.
- Increase in ES balances would be likely to change the way that the cash market operates.
- Large increases in ES balances could result in the cash rate drifting below the target.
About the RBA Minutes
The report on the Australian Reserve Bank committee meeting is usually released two weeks after the interest rate decision. These minutes contain what was discussed at the meeting, including the different points of view, expectations, elections and votes for the decided monetary policy. A positive outlook on the economy shows a possible rise in interest rates, which means upward pressure for the Australian dollar, on the contrary, a pessimistic outlook is negative and downward for the currency.
AUD/USD update following RBA and Chinese data
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
