The Reserve Bank of Australia will announce its latest decision on monetary policy shortly. On the 2nd of June 2020 the RBA left the official cash rate unchanged. The current official cash rate as determined by the Reserve Bank of Australia (RBA) is 0.25%.
The RBA rate indicator provides market participants and commentators with a market monitor for official cash rate expectations in Australia
What is the RBA Rate Indicator saying today?
As at 6 July, the ASX 30 Day Interbank Cash Rate Futures July 2020 contract was trading at 99.870, indicating a 62% expectation that the interest rate will decrease to 0.00% at the next RBA Board meeting. However, despite these contract numbers, a large number of pundits are predicting that the interest rate will stay unchanged.
Adding to record low rates, the central bank has indicated bond-buying might be on the table, although it has only purchased government debt on one occasion.
While economic news out of China has been upbeat of late, strained tension between Australia and China could continue to depress the Aussie dollar.
Earlier the AUD/USD pair briefly traded up near the 0.7 mark before dropping lower to the 0.696 region. Look for large moves if interest rates do indeed drop to 0.0%.