Westpac up their RBA QE forecast, an additional 100bn AUD

Westpac were previously looking for an extra 50bn, have increased that now to 100bn 

RBA to extend the program in October of this year

  • would extend the QE facility out to around October 2022.

Westpac adds:

  • It is unlikely that the FED will have made sufficient progress towards its goals by October this year to warrant scaling back its asset purchases.
  • Were the RBA to taper it will expose the AUD and signal to the market that it has begun tightening.

Added – AUS 10yr bonds have caught a bit of a bid 

AUD/USD adding on a few points regardless (NZD up also …. GBP too … so its not an AUD move):


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