Analysts at Australia and New Zealand (ANZ) banking group believe that the Reserve Bank of Australia (RBA) will bring an end to its quantitative easing (QE) program next month, despite the emergence of Omicron impact.
“We think the improvement in the RBA’s medium-term economic outlook and the more hawkish stance of the US Fed will lead it to end QE in February. “
“The fact that the RBA sees weekly bond purchases as additional support is critical to this decision.”
“Reflecting the risks to the outlook posed by Omicron, we think the RBA will defer for a few months the decision on whether to start quantitative tightening, ie whether to reinvest the proceeds of maturing bonds.”
Credit: www.fxstreet.com – Source link