RBA seen on hold this week – UOB

Lee Sue Ann, Economist at UOB Group, sees the RBA leaving the policy rate unchanged at its meeting on June 1st.

Key Quotes

“We continue to expect the cash rate to remain unchanged until 2024 and expect a full AUD100bn extension of quantitative easing (QE) beyond the second round”.

“That said, we think that Yield Curve Control (YCC) may not be extended past the April 2024 bond, with the RBA no longer able to credibly commit to rates staying at 0.1% beyond this point.”

FX

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