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MNI RBA Preview - September 2021: Touch & Go On Taper


  • The focus of September's RBA meeting will fall on the decision surrounding the Bank's yet to be implemented tapering move (to A$4bn of bond purchases/week), which, if it is upheld, will go into play in the coming days. It seems to be a very close call, with the near-term economic headwinds well-defined. However, the RBA previously pointed to a more medium-term view re: the benefits of elongating the current rate of bond purchases (A$5bn/week).
  • On balance, we would lean towards a delay of the already announced tapering move, but we do not have a strong conviction behind this call.
  • Fiscal support has been ample, with the RBA already outlining its view that fiscal levers provide the timeliest reaction to COVID headwinds, although the recent COVID-19 developments may tick the "further bad news" box and tip the balance towards a delay to the already announced tapering move.

Click to view the full preview:RBA Preview - September 2021.pdf
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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