UAUD - Australia: Shape And Impact Of Possible RBA QE
By Robert Carnell, Chief Economist Head of Research, Asia-Pacific, Francesco Pesole, FX Strategist and Petr Krpata, Chief EMEA FX and IR Strategist
Speculation that the Reserve Bank of Australia may embark on quantitative easing is growing, although we see no crisis to warrant the use of such an unconventional monetary tool. If anything, we would expect an Aussie QE to be limited in size but still trigger some AUD weakness.
Lowe still lacking reasons for QE
The latest rate cut by the RBA on 1 October took the cash rate to just 0.75% and