The Reserve Bank is readying for a Melbourne Cup interest rate cut, according to the minority of forecasters who think the lower bound of monetary policy will be reset, meaning easing on federal budget day is highly unlikely, but not impossible.
When bookmakers' favourites Russian Camelot, Tiger Moth, Surprise Baby and Santiago descend on Flemington on November 3, the bond market's eyes will be on the prospect of all or some combination of a three-year yield target, term funding facility rate and exchange settlement (ES) rate reduction.
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Vesna Poljak is the Companies editor. She was previously the Markets editor with a special interest in the investment industry, hedge funds and accounting. She is based in the Sydney newsroom. Connect with Vesna on Twitter. Email Vesna at vpoljak@afr.com
