Daily Commentary BY THE CURVE TEAM –

Daily Insights – RBA Holds

8 December, 2021

RBA Holds

  • Unsurprisingly there was no change in the current policy settings from the RBA.
  • On QE tapering, economic forecasts and bond market functioning will determine the RBA’s decision.
  • This is different to the cash rate, which will be determined by actual outcomes for inflation and employment.
  • Predictions for QE tapering suggest the RBA will taper to $2 billion a week of purchases from February, although there are calls for a complete end.

AMP 3 Year

  • BoQ issuing a 1 year FRN today at +27.
  • AMP will issue a 3 year FRN following an investor call today.
  • Indicative margins will be announced today and will likely be around +60 or more.
  • Given AMP will raise funds from the issue, there is every chance that their TD rates fall when the funds arrive.

Josh Stewart

Associate - Money Markets