National Australia Bank says it sees significant risk of the RBA easing policy further by cutting the cash rate, 3-year yield target and TFF rate by 15bps to 0.10% (from 0.25%).
- We also expect the RBA to announce outright QE purchases in the 5-10 year area of the curve, so as to lower longer-dated rates to provide stimulus via the portfolio rebalance effect/a lower $A.
NAB expects these further easing measures to be announced at either the October or November Board meetings.
Note, the October meeting is on the 6th. Less than 2 weeks away.
