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Ahead of the Reserve Bank of Australia’s (RBA) October 6 monetary policy meeting, analysts at Citigroup believe that the Australian central bank will likely keep the policy steady while dismissing the negative interest rates talks.

Key quotes

“RBA is in wait and see mode.”

“RBA is comfortable for now with the current level of monetary stimulus.”

“Negative rates pretty much ruled out.”

“We don’t see a negative for the currency from a central bank perspective for now.” 

“Risks to AUD are fat tailed:

Second wave risks, 

Health disappointment, 

US election,

Particular worry placed on the evolution of US/China relations and its relation to the presidential election.”