RBA set to defer bond taper – Bloomberg poll

Anil Panchal FXStreet

“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

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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