A forecast for halved RBA bond purchases in next phase of QE scale-back

Westpac with their outlook for Reserve Bank of Australia policy in the new year. This in brief from a more detailed note:

• The RBA's review of its bond buying program in February is likely to see a scaling back to a $2 billion weekly pace until May.
• Progress towards its objectives by February will be encouraging but the benefits of an immediate end to the program would not justify the potential costs.
• By May, the case will be clear that a very successful unconventional policy has done its job and the program can be wound up.