VIEW: McCrann: RBA Very Likely To Deliver A 'Rate Cut Plus' On Cup Day

RBA watcher Terry McCrann writes "as predicted, the RBA has kept the official interest rate unchanged and is now very likely to deliver a 'rate cut plus' on Cup Day."

• "If it did cut to 0.1 per cent, it would follow through by cutting the rate it charged the banks to 0.1 per cent and it would also step up its bond-buying to bring the yield down to 0.1 per cent."
• "It would also be likely to move to push that lower yield further out along the bond curve, to say five years bonds."
• "What adds to the likelihood of a Cup Day 'rate cut-plus' is that the RBA would not want to deliver it in December – too late into the critically important Christmas spending season, which has become even more critical, given the devastation across retail because of the lockdowns."