RBA set to defer bond taper – Bloomberg poll
|“Australia’s central bank is likely to push back its planned taper of bond buying, just four weeks after announcing it, as prolonged lockdowns triggered by the delta virus variant look set to send the national economy back into reverse,” per Bloomberg’s latest poll of 18 economists.
Key quotes (from Bloomberg)
Thirteen of 18 economists polled by Bloomberg expect the Reserve Bank will delay its planned reduction in weekly purchases to A$4 billion ($3 billion) from A$5 billion at Tuesday’s meeting.
The taper is currently due to begin in September and be reviewed a couple of months after that.
All but one economist expected gross domestic product would fall this quarter, with the New South Wales government now extending its harshest lockdown restrictions beyond southwest Sydney.
Australia’s economy will shrink by 2.7% this quarter, Commonwealth Bank of Australia estimates, slightly higher than the 2.4% contraction forecast by Bloomberg Economics.
Many of the respondents said the government is best placed to deliver the support needed for the economy to cope with the latest outbreak.
AUD/USD edges higher
The upbeat poll fails to support AUD/USD bulls, earlier benefited from the US Federal Open Market Committee (FOMC) verdict, as the quote eases to 0.7370 by the press time of early Thursday morning in Asia, down 0.05% intraday.
Read: AUD/USD pauses post Fed recovery below 0.7400, seeks fresh clues
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.