The latest Reuters poll of 25 economists revealed that the Reserve Bank of Australia (RBA) is seen cutting the Official Cash Rate to an all-time low of 0.10% at its monetary policy meeting due on November 3 while expanding its quantitative easing (QE) program.
Key findings
As many as 21 of the 25 surveyed, or 84%, expect a 15 basis point cut to 0.10% at the Reserve Bank of Australia’s (RBA) Nov. 3 board meeting. One economist predicted a 10 basis point cut to 0.15% while the remainder forecast no change.
Analysts also predict the RBA would expand its government bond-buying programme.
The dovish expectations strengthened after the RBA Governor Phillip Lowe said last week that further monetary policy easing remains on the cards while adding the board was mulling whether to expand its quantitative easing programme to include bonds with maturities beyond three years.
At the press time, AUD/USD adds 0.18% to trade at 0.7092, with the upside capped by the Chinese Q3 GDP miss.
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