RBA forecast to keep rates on hold on Tuesday – UOB

Economist Lee Sue Ann at UOB Group suggests the RBA is likely to leave its monetary conditions unchanged at its Tuesday’s meeting.

Key Quotes

“So far, the RBA’s rhetoric has reinforced our view that it will hold off bringing the policy rate into negative territory (for now). We thus look for the OCR to remain unchanged at 0.10%.”

“Although the outlook has improved, the pandemic has still been a large hit to the economy such that exceptionally easy policy is warranted. On the term funding facility (TFF), we think the RBA could let it end at its scheduled date of June 2021.”