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MNI RBA Preview - July 2021: Decision Time

Executive Summary

  • The RBA will have key decisions to make come the end of its July meeting, namely surrounding the future of its yield targeting measure and the future of its bond purchase scheme. We do not expect the yield target scheme to be rolled over to ACGB Nov '24, in line with market consensus, while we expect the RBA to adopt a flexible round of bond purchases come the end of the existing round of purchases.
  • The RBA is currently facing headwinds from COVID-related lockdowns (most notably in Sydney), although this shouldn't de-rail the medium term performance of the Australian economy.
  • RBA Governor Lowe's post-meeting address will of course be key for clarifying points raised in the post-meeting statement and setting expectations.

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RBA Preview - July 2021.pdf

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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