Westpac ups forecast for third round of RBA QE

By Sophia Rodrigues

Published 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).

 

LATEST SNIPPETS

Australia jobless rate drops to 6.4%; hours worked falls sharply due to leave

Australia's unemployment rate fell to 6.4% in January from 6.6% as the number of employed rose 29,100 while the n...

Published on : 18 Feb 2021 , 12:08 PM
ANZ analysts see NZ in leading position to normalize monpol

Forex analysts at ANZ have created an interesting pressure gauge to measure and rank the distance that each G10 econo...

Published on : 17 Feb 2021 , 11:35 AM
Key headlines from RBA statement Tuesday

From the RBA's February Monetary Policy Decision statement:
--QE extension of A$100 billion after current...

Published on : 02 Feb 2021 , 02:35 PM
AOFM updates issuance guidance for rest of the year

Following the release of MYEFO on Thursday, the Australian Office of Financial Management has updated issuance plans...

Published on : 18 Dec 2020 , 09:06 AM
Finally the MYEFO date...

After a few phone calls, I finally managed to get confirmation that MYEFO will be published on Thursday. Even the Tre...

Published on : 14 Dec 2020 , 10:45 AM
Headlines from RBA Debelle's speech Tuesday

Headline from RBA Deputy Governor Guy Debelle’s speech Tuesday:

--RBA CAREFULLY MONITORING IMPACT OF...

Published on : 24 Nov 2020 , 01:30 PM
RBA not buying bonds under yield target; A$2B under QE

The RBA will buy A$2.0 billion of November 2024 to May 2028 AGS under the A$100 billion QE program today.

T...

Published on : 19 Nov 2020 , 11:23 AM
RBA buying longer-term Semis today

The RBA is buying A$1.0 billion of Semis with maturities in the July 2028 to May 2032 range. This is part of its purc...

Published on : 18 Nov 2020 , 11:30 AM
RBA again buying April 2024 under yield target plus A$2B QE

For the third time in a row, the RBA is buying bonds under the 3-year yield target policy at the same time as it is p...

Published on : 16 Nov 2020 , 11:20 AM
CBA economists see Australia jobless rate at 5.75% by end-2021

A very bold set of forecasts from CBA economists who have just upgraded their forecasts for Australian economist.

...

Published on : 13 Nov 2020 , 10:20 AM