Australia: RBA set to use policy ammunition – Commerzbank

The Reserve Bank of Australia has little room to act but analysts at ANZ Research expect the Australian institution to fire its latest bullets in April. The implementation of quantitative easing is also on the cards. 

Key quotes

“The RBA seems set to use its remaining conventional policy ammunition in April if it cuts the cash rate to 0.25%.”  

“We expect the RBA to retain an explicit easing bias after an April rate cut. With conventional policy exhausted, this bias must encompass the possible implementation of quantitative easing (QE) in some form.”   

“It is not yet a ‘given’ that QE will be required, with the level of fiscal support an important consideration. But the prospect is very real.”