Westpac ups forecast for third round of RBA QE
By Sophia RodriguesPublished On 26 Mar 2021 , 11:19 AM
Westpac has revised its forecast for RBA's Bond Purchase Program, now expecting the second A$100 billion bond-buying to be followed by a third A$100 billion program (up from A$50 billion previous expectation).
Westpac has maintained the forecast for fourth round of bond purchase at A$50 billion, chief economist Bill Evans wrote in a note.
Westpac expects the Fed's QE policy to be a very important signpost for the RBA.
"It is unlikely that the FED will have made sufficient progress towards its goals by October this year to warrant scaling back its asset purchases. Were the RBA to taper it will expose the AUD and signal to the market that it has begun tightening. Such a signal could expose the recovery to unnecessary pressure and cast doubt on the credibility of any forward guidance the RBA may be offering," the note said.
Evans discussed the possibility (not his central call) that the RBA could revert to a more flexible program from October by committing to an open ended monthly target of, say, A$20 billion, (in line with the current purchase pace).
Big four banks' forecast for the RBA cash rate:
--ANZ expects first rate hike in 1H of 2024. "Our...Published on : 17 Sep 2021 , 10:50 AM
Small change in timing of RBA Governor Philip Lowe's speech this afternoon, now at 1300 hours Sydney time (was 12...Published on : 14 Sep 2021 , 11:55 AM
The AOFM is expected to issue A$3.0 billion of 0.25% November 2032 Treasury Indexed Bond after orderbook topped A$7.1...Published on : 24 Aug 2021 , 09:10 AM
The AOFM's syndication of 0.25% November 2032 Treasury Indexed Bond attracted orderbook over A$3.3 billion by 130...Published on : 23 Aug 2021 , 02:23 PM
RBA Governor Philip Lowe's panel participation at a banking conference on Wednesday (June 30) has been cancelled...Published on : 28 Jun 2021 , 11:49 AM
RBA Assistant Governor Luci Ellis will be speaking at AI Group Business Lunch event this afternoon. The speech is due...Published on : 23 Jun 2021 , 11:04 AM
Earlier Wednesday, ANZ published its view on third round of RBA's bond purchase program. In a note Wednesday, ANZ...Published on : 19 May 2021 , 01:44 PM
The AOFM has issued A$14 billion of the 1.75% 21 November 2032 bond issue at a price of +12.5bps, and indicative yiel...Published on : 13 Apr 2021 , 10:22 AM
Pricing for The Australian government's 1.75% 21 November 2032 bond issue has been set at +12.5bps, and the order...Published on : 13 Apr 2021 , 09:37 AM
Westpac has revised its forecast for RBA's Bond Purchase Program, now expecting the second A$100 billion bond-buy...Published on : 26 Mar 2021 , 11:19 AM