Back

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

Infrastructure agreement on major issues reached by bipartisan group of Senators – WSJ

After weeks of intense talks and multiple rejections, the US policymakers are confident of getting President Joe Biden backed infrastructure spending
Leer más Previous

USD/JPY consolidates below 110.00 ahead of US critical data

USD/JPY remains muted in the Asian session on Thursday. The movement in the US dollar keeps USD/JPY on the lower side. At the time of writing, USD/JPY
Leer más Next