The important and highly anticipated July policy meeting for the RBA is finally upon us, but what seemed to be a clear expectation for the meeting just a week ago has been muddied by recent Covid developments.
The RBA has previously said that they will use the July policy meeting to make important decisions regarding their three year yield target bond, as well as the future of their Quantitative Easing endeavours.
Until a week ago, market participants were scaling back their dovish expectations for the RBA quite aggressively after a stellar May Jobs print saw the Unemployment Rate moving back towards pre-pandemic levels.
However, the recent virus situation has muddied the waters, as those expecting a hawkish tilt by the bank are not so sure anymore with more than half of Australia’s population back in lockdown. That means there is room for the RBA to disappoint those that had their expectations set on a hawkish tilt from the bank.
We’ll go through all of that in this week’s video.