Australia's big four banks on RBA's 0.1% April 2024 target

By Sophia Rodrigues

Published On 27 Oct 2021 , 10:55 AM

Big four banks on the RBA's 0.1% target on April 2024 bond:

--ANZ expects the RBA to drop the target when it brings forward timing for first hike. "If the RBA's expectation about the first hike is brought forward, the target will have to change and the easiest option is to simply drop it," ANZ's David Plank wrote in a note
--CBA's head of Australia economics Gareth Aird has yet to publish his view on the April 2024 target
--NAB economists expect RBA's first hike in 2024. So based on the rate hike timing, it appears they expect no change in the 0.1% April 2024 target.
--Westpac chief economist Bill Evans says the RBA should not walk away from the target.  "That can only happen when the Bank actually raises the cash rate. At that point there will be no further responsibility to purchase the bond at 0.1%," Evans wrote in a note. For context, Westpac expects first RBA hike in 2023 March quarter.

LATEST SNIPPETS

Moody's warns profits of big four Australian banks under pressure

Profitability of the big four Australian banks is under pressures from low interest rates amid weak credit growt...

Published on : 25 Nov 2019 , 03:35 PM
Australia Oct Labor Data Dovish for RBA Dec Meeting

Australia's unemployment rate rose to 5.3% in October from 5.2%, due to 19,000 fall in employed numbers. This was...

Published on : 14 Nov 2019 , 12:00 AM
Why RBNZ will Hold OCR at 1%

I am a bit surprised with market reaction to RBNZ's inflation expectations survey yesterday. While I acknowledge...

Published on : 13 Nov 2019 , 12:00 AM
Market Pricing for RBNZ Cut --How Much is "Will do"?

In their markets outlook on Nov 11, economists at BNZ wrote, "RBNZ shouldn’t cut this week but probably wi...

Published on : 13 Nov 2019 , 12:00 AM
What does RBA's Gentle Turning Point Refer to?

RBA Governor Philip Lowe first referred to gentle turning point at the Parliamentary testimony in August when he said...

Published on : 07 Nov 2019 , 12:00 AM
Expect Dovish RBA Statement, Refined Forward Guidance

It is very unusual for both market and economists to be strongly expecting a particular outcome (hold) for a RBA boar...

Published on : 05 Nov 2019 , 12:00 AM
Australia: More Reason to Buy vs Rent Dwelling

More reason to buy vs rent? For the first time since at least 2007, gross rental yields for properties in Australia&#...

Published on : 01 Nov 2019 , 12:00 AM
Will RBA Debate Further Easing at Nov Meeting?

Even before the RBA Nov board meeting begins, I am curious to find out if there will be a vigorous debate about...

Published on : 30 Oct 2019 , 07:21 AM
RBA Should Cut Now to Avoid QE

A few weeks back I wrote an article about how in theory the RBA could avoid QE, but to do so requires continuation of...

Published on : 31 Oct 2019 , 07:15 AM
Australia: Housing Group Numbers Disappoint Most in CPI

The most disappointing numbers in Australia Q3 CPI are the ones for housing group. Rent rose 0.4% y/y (and below 1.0%...

Published on : 30 Oct 2019 , 07:13 AM