VIEW: ANZ Expect RBA To Opt For Pure QE In Nov, Less Confident On Rate Cut

ANZ think "the RBA will opt for QE in November, but we aren't as confident on this as we are on the call that the cash rate will be reduced to 0.1%. The fact that Lowe emphasised, as did Deputy Governor Debelle in an earlier speech, that the expansion of the TFF meant that "there will be a further significant expansion of our balance sheet" is an important consideration in the question of whether 'pure' QE will be introduced in November. Importantly, though, the 10y ACGB yield has fallen sharply following Lowe's comments so not moving to QE in November will now be quite a disappointment."