Reserve Bank of Australia meeting Tuesday June 1, announcement due at 0430GMT
- As always there will be an accompanying statement from Governor Lowe
- There is no press conference scheduled, there (pretty much) never is (there was one in 2020, following the November meeting if memory serves, which was unusual).
Via Westpac a brief heads up on what to expect. The spoiler alert is the June meeting is a nothing burger (bolding below, you'll note WPAC is more eloquent than me)
- The minutes of the May Board meeting confirmed that the Board will decide on the next stage of its Yield Curve Control (YCC) and Quantitative Easing (QE) policies at its July meeting. As such, the next meeting in June will be one of 'marking time' and discussing the recent run of data. The May minutes noted that recent data and financial conditions will be factors influencing the decisions in July.
- Westpac expects the Board to extend the QE policy to a further $100 billion beginning in September and to switch the target bond in the YCC policy from April 2024 to November 2024. This view is based on the expectation that the Board will be committed to monetary stimulus (reducing QE or restricting YCC to the April bond are akin to tightening policy) for the remainder of 2021. Despite more promising signs around momentum there is still much to be done for the Bank to achieve its objectives of full employment and its inflation target.
