RBA expected to reduce rates on Tuesday – UOB

Lee Sue Ann, Economist at UOB Group, suggests the RBA could cut its policy rate to 0.10% at its Tuesday’s meeting.

Key Quotes

“We expect the RBA to ease policy further to revive the economy by cutting the cash rate, 3-year yield target and the Term Funding Facility (TFF) rate by 15 bps.”

“The remuneration on Exchange Settlement (ES) balances, which is already at 0.10%, is likely to be either unchanged, or cut slightly, so as to remain positive.”

“We also expect the RBA to announce further QE purchases ahead.”