Australias CB says Premature to End Bond Buying Programme

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Australias central bank on Tuesday expressed its desire to extend its bond buying program next month and lay out various options for the plan aimed at meeting its goals of boosting jobs and inflation.

Minutes of the Reserve Bank of Australias RBA June policy meeting called for members to reduce their massive quantitative easing campaign and even call for the current A100 billion 77 billion round to end in September Discussed closure.

This is the first time the Reserve Bank of Australia RBA has determined how it can modify its bond buying campaign. The final decision is to be taken at the meeting to be held on July 6. Whatever decision the RBA makes about the bond purchase program, analysts expect it to keep the policy cash rate at a record low 0.1 for a long time to come.

Given that the bond purchase program was one of the factors easing the adjustment conditions required for economic recovery, members thought it was too early to consider ending the program, the minutes of its June policy meeting showed. is.

Other options discussed include a third round of 100 billion bond purchases for six months, reducing the amount purchased and spreading the purchases over a longer period.

Moving to an approach where the pace of procurement is reviewed more frequently based on the flow of data and economic outlook was also discussed.

The RBA gave no indication of preference. Economists are divided on the approach the central bank might take, with some predicting another 100…

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