Economists anticipate Australia’s central bank’s taper reversal
The Reserve Bank of Australia was seen to backpedal on tapering its bond-buying program during its board meeting on August 3 if COVID-19 lockdown persists in Sydney, economists said on Tuesday.
The taper reversal anticipation came after a majority of analysts predicted that Australia will experience its first contraction since June 2020 in the third quarter this year.
Minutes of the central bank’s July meeting released on Tuesday hinted a revisit of its taper decision following the flexibility around its bond-buying policy, said Australia and New Zealand (ANZ) Banking Group economist David Plank.
The RBA announced slashing its bond purchases from September to A$4 ($2.93 billion) a week from the current A$5 billion earlier this month due to better-than-expected economic outcomes.