Reserve Bank of Australia announcement is coming up at 0430 GMT on 1 September 2020. Earlier previews are here:
Scanning through some of the previews from various bank notes its an ‘as you were’ meeting with only one expecting some policy change (see below, bolded). There is also some minor contention about what Lowe will say on the outlook, especially in regards to the drag on growth (or not) from lockdown 2 in Australia’s second-largest city of Melbourne:
- We expect the statement to point to heightened uncertainty and downside risks, particularly in relation to the Melbourne lockdown. We also expect the RRBA to increase its bond purchases for the first time since May.
- The fall-out of the lockdown in Victoria will likely be in focus and Governor Lowe may once again highlight the serious economic damage for the whole country.
- The Bank is likely to assert that uncertainties remain high especially in light of the Covid-19 developments in Victoria. The RBA noted the downturn is not as severe as earlier expected and a recovery is underway in most of Australia. We expect the RBA to indicate this still remains the case.