Nomura: RBA Has Eased Off the Accelerator

The transcript discusses the Reserve Bank of Australia's (RBA) flexibility in monetary policy amid COVID-19 uncertainties, highlighting adjustments in cash rates and quantitative easing. It examines Australia's economic data, noting strong housing market performance and labor shortages. The discussion also covers the Aussie dollar's outlook, influenced by domestic economic strength and global risk sentiment, with a focus on the US dollar's impact.

What is the RBA's central scenario regarding the cash rate?

• Immediate rate rise

• Rate rise in 2022

• No rate rise before 2024

• Rate cut in 2023

What is one of the main factors contributing to labor shortages in Australia?

• Loss of short-term visitors

• Decrease in housing prices

• Surplus of agricultural workers

• Increase in short-term visitors

How have dwelling prices in Australia been trending recently?

• Stable with no change

• Fluctuating unpredictably

• Decreasing by 2% per month

• Rising by 2% per month

What is a current headwind for the Australian dollar?

• Trade deficit

• Low commodity prices

• Strong US dollar

• Weak domestic economy

What is the expected trend for the Australian dollar over the medium term?

• Fluctuate around $0.50

• Rise towards $0.80

• Remain stable at $0.70

• Decline towards $0.60