RBA set to upgrade 2021 economic forecasts – MNI

The Reserve Bank of Australia (RBA) may bump its 2021 forecasts for key indicators such as employment, in the wake of an earlier-than-expected global coronavirus vaccines rollout and Australia's relative success in containing the pandemic, MNI reports, citing unnamed sources familiar with the RBA’s thinking.

Key takeaways

“The RBA is prepared to provide more monetary stimulus if required, and the likely tools would be adding to the AUD100 billion program of quantitative easing buying Australian Government 5-10 year bonds.”

“Negative interest rates are still considered highly unlikely for Australia.”

“There is a view at the RBA that the potential for early global deployment of coronavirus vaccines is lessening the likelihood that other central banks, such as the Bank of England and even the Reserve Bank of New Zealand, will take rates negative.”