National Australia Bank is one of Australia's 'big four' banks. Analysts at NAB expect the RBA to end its QE bond-buying program at the February meeting.
- We expect the QE program to be wound up in February which would see the current and final tranche of bond purchases total around $85bn, taking total purchases to around $350bn since November 2020.
- The drivers of this decision will likely be a faster taper by the Fed and the fact that the RBA has likely expanded its balance sheet significantly more than expected by not tapering in November (against the backdrop of a smaller-than-expected hit to activity and faster rebound), and the fact we think the unemployment rate will have returned to the mid 4’s by the time of the February meeting.
I posted on Westpac's contrasting view earlier this week, WPAC expect a 'taper' from Feb. and an end in May (read this post for the details):
