The Reserve Bank of Australia (RBA) is likely to provide additional easing, according to Australia’s largest fund manager AMP Capital.
More easing could come in the form of more definitive bond-buying program and dovish forward guidance, whereby the central bank would commit to tolerate above-target inflation, according to AMP Capital’s Chief Economist Shane Oliver.
The central bank cut rates to record lows and launched a yield curve control program in the second quarter to combat the coronavirus-led economic downturn.
The minutes of RBA’s September minutes released early Tuesday said the slowdown was less severe than expected. However, policymakers were open to doing more [easing] if required.
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