MNI BRIEF: US Budget Deficit $367B In Nov; FYTD Record $624B

MNI BRIEF: Former BOC Dep Beaudry Sees 2.75%-3% Rate In 2025

BOC WILL BE CONSDIERING FURTHER RATE CUTS

MNI China Daily Summary: Wednesday, December 11

MNI BRIEF: Chinese Rail Passenger Numbers Break Record

MNI: PBOC Net Injects CNY37.3 Bln via OMO Wednesday

MNI: US NOV TREASURY BUDGET -$366.8B

EZ/UK Bond Supply Calendar: BTP Auction on Thursday

US EIA: CRUDE OIL STOCKS EX SPR -1.42M TO 422.0M DEC 06 WK

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

VIEW: Goldman Sachs On Today's RBA Decision

RBA
  • The RBA left the targets for the cash rate and the 3-year government bond yield unchanged at 0.25% at its August Board Meeting, in line with expectations. The RBA's forward guidance was unchanged, although it did observe that the 3-year yield had "been a little higher than 25bp" and guide that it would "purchase AGS in the secondary market".
  • In the subsequent Statement on Monetary Policy and Parliamentary Testimony, the RBA provided extensive guidance around its assessment of the economic outlook and possible future policy adjustments.
  • On the latter, Governor Lowe noted the RBA "could make some adjustments" but didn't think they would "get much traction" and continued to highlight the importance of ongoing fiscal support. That said, Governor Lowe did signal that any further easing would likely involve lowering the cash rate target to 10bp and expanding purchases of longer duration bonds, rather than adopting negative rates.
  • Looking forward, we expect the RBA to keep policy setting unchanged in September, with little change in forward guidance. At the margin, trends in both the virus & macro data have been fairly positive since August's meeting, albeit still soft in absolute terms. Our base case remains for the RBA to remain on hold for the foreseeable future, with a ~25% chance of further incremental easing if the recovery proves slower than expected.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
BulletMarketsFixed Income BulletsForeign Exchange Bullets
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
BulletMarketsFixed Income BulletsForeign Exchange Bullets

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.