THE COLOUR OF THE MONEY OR THE INTEREST RATE CUT


 

It’s the colour of the money the RBA may print rather than the size of any interest rate cut that will matter the most on Melbourne Cup day, Tuesday, 3 November 2020.

The bond market has priced in a 0.24% official cash rate cut (see chart below) but how many $billions of bonds will the RBA buy as the Buyer of Last Resort?

What do you say?