Kent reiterated that the bank did not expect domestic inflation to return to its 2-3% target band until 2024 at the earliest, so policy would need to stay very accommodative.
"We expect the Governor to announce an open ended A$5 billion per week purchase programme to be reviewed later in 2021 to be introduced following the completion of QE2," Evans said.
Australian government bond futures eased too, with the three-year bond contract off 1 tick at 99.74 ticks, implying yield of 0.25% when the cash rate is at 0.1% now.
George Tharenou, an economist at UBS, estimated the budget contained A$96 billion in extra stimulus over five years, leading to upward pressure on wages and inflation.