The confidence function re: lower rates has.....>

RBA: The confidence function re: lower rates has become a noted point in recent

RBA communique, with most of the opinion that the RBA would rather adopt

unconventional easing measures to avoid the "burden" of negative interest rates

(most look for a low point in the cash rate of 0.25/0.50%), if it deemed such

measures appropriate.

- The common train of thought (largely derived from Governor Lowe's August

appearance in front of the House of Representatives Standing Committee/Q&A

session) has resulted in many suggesting that the RBA would favour an outright

QE programme, in order to lower the longer term risk-free rates, with there also

being some potential for a facility akin to the ECB's TLTRO programme, if deemed

appropriate/needed by the RBA.

- As previously mentioned next week will see Lowe speak on "Unconventional

Monetary Policy: Some Lessons from Overseas."