Opinion
RBA will want to see budget before cutting rates
For an RBA governor who, senior government figures note, speaks a lot publicly about fiscal policy, sitting pat in October would avoid the RBA distracting from the government's budget messaging about plans to recover from the COVID-19 recession.
John KehoeEconomics editorThe Reserve Bank of Australia will likely wait until at least November before deploying new extraordinary monetary policy stimulus, vacating the stage on Tuesday, October 6, for the Morrison government's crucial budget to outline the next steps to recover from the COVID-19 recession.
Following a speech from RBA deputy governor Guy Debelle on Tuesday, Westpac chief economist Bill Evans and other RBA watchers excited financial markets on Wednesday by predicting the central bank at next month's board meeting would trim the overnight cash rate to 0.10 per cent, offer extra cheap loans to commercial banks and more aggressively buy government debt.
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