VIEW: ANZ note that "It is possible to see......>

RBA: VIEW: ANZ note that "It is possible to see things evolving positively

enough in the next few weeks (given coordinated domestic monetary and fiscal

action plus global measures) for the RBA to conclude that it doesn't need to

provide more support. But it seems more likely that the trend of the epidemic's

impact will become more negative in the near term, as new outbreaks spread. We

think a follow-up rate cut in April is the most likely next step for the RBA.

We'll take the RBA at their word that 0.25% is the effective lower bound for the

cash rate. Reaching that point will immediately prompt speculation about the

prospect of quantitative easing (QE). Indeed, that speculation has already

begun. We have argued that this next step was a long way off and would require

exceptional circumstances for it to be taken. The potential scale of the

economic shock from COVID-19 could, unfortunately, provide the required

exceptional circumstances. So we have to acknowledge that QE in 2020 is

something that has to be considered. But we think that the econ deterioration

that could bring QE about should trigger a fiscal response from the gov't. This

may provide the balance to policy that makes QE unnecessary. Time will tell."