Citi discusses the RBA policy trajectory in light of the central bank's latest meeting minutes this week.
"RBA monetary policy remains mildly dovish with further cuts dependent largely on the performance of the labor market. Following the three recent rate cuts and no smoking gun for another near-term cut, Citi analysts retain their call for no further policy easing until February 2020 as the RBA appears prepared to give previous rate cuts and tax rebates more time to support activity and given previous commentary from Governor Lowe that the economy has reached a gentle turning point. No discussion of QE in the Minutes - Despite the cut to 75bps in October, the Minutes make no mention of unconventional measures.
"Citi analysts think markets appear to have rushed too hard into speculation about unconventional policy measures being deployed in Australia," Citi adds.