RBA: Negative rates look off the table (for now) – UOB

Economist at UOB Group Lee Sue Ann reviewed the latest RBA meeting (December 1).

Key Quotes

“The Reserve Bank of Australia (RBA), at its final monetary policy meeting of the year, decided to retain the current policy settings, including the targets of 10 basis points for the cash rate and the yield on 3-year Australian Government bonds, as well as the parameters of the Term Funding Facility and the government bond purchase program.”

“Our view remains for the RBA to hold off (for now) in regards to bringing the policy rate into negative territory. If the need for more easing arises, more Quantitative Easing (QE) and yield curve control are likely to follow first. We also see fiscal policy continuing to play a key role in stimulating the economy and expect that the government will need to do more.”