The Reserve Bank of Australia Governor Lowe's statement is due at 0430 GMT on Tuesday 03 August 2021.
Earlier previews are here:
- RBA monetary policy meeting Tuesday 3 August 2021 - preview
- RBA monetary policy meeting Tuesday 3 August 2021 - preview
A couple of weeks again Westpac flagged they expected the new round of lockdowns in Australia to come at a substantial cost to the economy, issuing revised estimates for Q3 GDP ay minus 0.7% q/q. And that, for the RBA this has implications:
- we believe a better approach would be to announce in August that the Board will instead review the taper decision at the September meeting
And not just review the taper plan but ....
- a decision could be made to actually lift purchases from the week of September 10 to $6 billion per week with a review in November.
WPAC have gone further in comments this morning ahead of the meeting:
- Given the sharp unexpected deterioration in the economy the Board should send a clear signal that it continues to be committed to supporting the Australian economy with an immediate increase of weekly bond purchases to $6 billion. It should also announce a deferment of the taper from $5 billion to $4 billion that was planned for early September, and should commit to maintaining the $6 billion purchase pace through to the November Board meeting.
