Australia Commonwealth Bank of Australia expects steady policy rates in October
Flick: I can only congratulate Klopp on Thiago signing
Hansi Flick has confirmed midfielder Thiago Alcantara has said goodbye to Bayern Munich's players ahead of his expected move to Liverpool.After months of speculation about his future, Thiago finally appears set to depart treble winners Bayern and join Klopp's Premier League champions.
SYDNEY (Reuters) - Economists at the Commonwealth Bank of Australia (CBA) expect the country's central bank to hold interest rates at a record low 0.25% at its Oct. 6 board meeting, in contrast to calls for a cut from its two major rivals.
Financial markets are pricing in a 60% chance of a cash rate cut by the Reserve Bank of Australia (RBA) to 0.1% from 0.25% now. Yields on three-year government bonds have dropped to 0.2%, implying a 33% chance that yield curve target is also lowered to 0.10% from 0.25%.
New local lockdown rules announced in parts of North West, Midlands and West Yorkshire
Parts of the North West, West Yorkshire and the Midlands have been placed under further localised coronavirus restrictions. The new measures, prompted by a fast rise in COVID-19 cases, have been confirmed by the Department for Health following consultation with local councils and MPs.
"So the meeting is clearly ‘live’," wrote Gareth Aird, CBA's head of Australian economics, adding the RBA will leave policy rates unchanged next month.
"We believe the RBA will be acutely aware that the potential costs and risks of (easing) at this juncture outweigh the potential benefits."
Aird said tinkering with the cash rate carries the risk of other important short-term rates falling into negative territory, which would be a clear deterrent for the RBA from here.
Earlier this week, Westpac Banking Corp Economist Bill Evans revised his RBA rate call to predict a 15 basis point cut while National Australia Bank has said an easing is likely next month or in November.
The change in stance followed a speech by RBA Deputy Governor Guy Debelle on Tuesday where he left the door ajar for further monetary easing.
CBA's Aird said at this stage an increase in the rate of government bond purchases was the most likely next step from the RBA on the monetary policy front.
"We believe the RBA will not introduce new policy options until the current actions have been expanded. That leads us to conclude that monetary policy is on hold in October," he noted.
(Reporting by Swati Pandey; Editing by Christian Schmollinger)
Melbourne restrictions to ease further as city 'ahead of schedule' in second wave fight .
Melbourne's curfew will be lifted from 5am on Monday morning as coronavirus restrictions are eased in Victoria. Limits on shopping, outdoor gatherings and visiting patients in hospitals are among further changes to come into effect for Melbourne residents from 11.59pm tonight.However, there remains only four reasons to leave your home and that stays in place until Melbourne moves to Step three.