MNI BRIEF: RBA Extends QE To February, Leaves Rates Unchanged

The Reserve Bank of Australia will continue its bond buying program until at least February next year in response to the economic impact of the ongoing pandemic lockdowns, the board said at its latest meeting on Tuesday.

The RBA board decided that it would purchase government bonds at a rate of AUD$4 billion per week "until at least mid-February 2022."

The previous program was to move from purchasing AUD5 billion each week early this month, when the current program expires, and then purchase at a rate of AUD4 billion until November when the situation would be reviewed, see: MNI STATE OF PLAY: Lockdowns Could See RBA Delay Taper.

The RBA cited "the delay in the economic recovery and the increased uncertainty associated with the Delta outbreak" as the reason for its decision.

As expected, the RBA held official rates steady at the official low of 0.10% and repeated the view that conditions for a rate rise "will not be met before 2024."