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RBC note that "the next few months are going to remain challenging for the economy given the unenviable combination of a highly contagious Delta strain and still low nationwide vaccination rate (currently ~13% fully vaccinated adult population). We are, however, mindful of government support which we would expect to lift further if needed. And, the RBA may well stick to its view that lockdowns are just temporary hits to activity and the labour market. Indeed, by the 3 August board meeting, which is only 2 weeks away and amid constantly changing COVID-19 developments, it may not have made up its mind as to whether to tweak policy settings when QE2 ends in early Sep. However, our evolving base case suggests that the optics will be difficult to begin QE3 taper at this time and a continuation of the current A$5bn weekly purchase pace may be more likely."