The Aussie is falling. Overview for 02.11.2021
The Australian Dollar is retreating against the USD on Tuesday. The current quote for the instrument is 0.7458.
The Reserve Bank of Australia had another meeting today. The benchmark interest rate remained unchanged at 0.1% as expected. It’s been the lowest value ever and it remains intact. It was quite unusual that the RBA scrapped the 0.1% yield target on April 2024 government bond. Earlier, it was 10 basis points.
The stimulus programme will remain in effect at A$4 billion a week until at least mid-February 2022.
Overall, the regulator is sticking to a “wait-and-see” attitude. The RBA is in no hurry, under no pressure. To act more decisively, the RBA wants to see stable growth of salaries as was said earlier. As long as inflation is outside the 2-3% range, the regulator won’t consider any rate hikes.
The RBA announced its forecasts for the key macroeconomic indicators. For example, the GDP is expected to add 3.0% in 2021, 5.5% in 2022, and 2.5% in 2023. The Unemployment rate is expected to drop, to 4.25% at the end of 2022 and 4.0% in 2023.
The key risk is the situation in the healthcare sector and the pandemic. If the anti-coronavirus vaccination campaign boosts and produces positive results, the economy may recover quite quickly.
The Aussie’s response to the meeting results was decline.
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