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Heads up: RBA monetary policy decision due at the bottom of the hour

RBA to announce their latest policy decision at 0430 GMT

The RBA is expected to keep its cash rate unchanged but the big decision to watch is whether or not they will stick with tapering plans in today’s meeting.

They shrugged things off back in August here but since then, the virus situation hasn’t gotten any better and it will still take some time for (until October) for vaccinations to reach 80% in New South Wales and Victoria.

Even with the high vaccination rate, it may not prove satisfactory enough to prevent lockdown measures considering the strict protocol as long as the daily case count are still in the hundreds or thousands (currently the latter).

Australia

On the balance of things, the RBA is expected to delay its tapering plans and stick with government bond purchases of A$5 billion per week perhaps through to November.

However, just be reminded that such a call isn’t quite unanimous and that points to the fact that risks are more skewed to the upside for the aussie today.

A taper delay may weigh on the currency slightly but any downside would arguably be more contained as opposed to upside stemming from a decision not to delay tapering.

You can check out a host of previews by Eamonn and Adam earlier here.

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