The JP Morgan analysts foresee the Reserve Bank of Australia (RBA) announcing quantitative easing (QE) by the end of next year after the Australian central bank revised down the economic forecasts and assumptions in its quarterly Statement on Monetary Policy last week.
Key Quotes:
“The current policy settings in Australia won’t achieve the macro-economic outcomes that are consistent with the RBA’s objectives
For some time, we have forecast that the RBA will cut rates by a further 25 basis points in February 2020.
We now add quantitative easing to this forecast, and anticipate that the RBA will deliver a package of unconventional monetary policy measures in the fourth quarter of 2020.”
The Aussie seems to have shredded the early gains to now print fresh nine-day lows near 0.6840, having breached the 100-DMA at 0.6846.
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