RBA forecast to keep rates at 0.10% in 2021 – UOB

Economist at UOB Group Lee Sue Ann checks out the latest RBA event (Tuesday).

Key Quotes

“The Reserve Bank of Australia (RBA), as expected, decided to maintain the current policy settings at its March meeting, including the targets of 10 basis points for the cash rate and the yield on the 3-year Australian Government bond, as well as the parameters of the Term Funding Facility and the government bond purchase program.”

“The economy is expected to continue improving, though the recovery will be slow and uneven. Hence, exceptionally easy policy is warranted. The RBA’s rhetoric continues to reinforce our view that it will hold off bringing the policy rate into negative territory (for now). We thus look for the OCR to remain unchanged at 0.10% for the rest of this year.”