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Previewing the Reserve Bank of Australia’s (RBA) June monetary policy meeting, “the RBA Governor has ruled out both further cuts in the cash rate and negative rates,” note TD Securities analysts.

Key quotes

“The RBA appears happy with current monetary developments. Funding costs have remained low and long end bonds have held ground into and after the Dec’30 syndicate even as RBA buying has effectively been put on ice for nearly a month now. We don’t expect any new RBA initiatives at tomorrow’s meeting.”

“Recent RBA commentary suggests outcomes are better than the Bank’s central forecast but below the optimistic scenario. This gives the RBA time to assess developments till Sep which is when most fiscal measures are anticipated to roll off.”