Summary
[Analysts comment on the Reserve Bank of Australia’s resolution: only technically reducing debt purchases]The Reserve Bank of Australia announced a plan to reduce the scale of debt purchases, which is only a small plan from a technical definition. Because the Reserve Bank of Australia stated that it will purchase government bonds at a rate of 4 billion Australian dollars a week, and at the same time extend the purchase period from November 2021 to February 2022. The Reserve Bank of Australia is basically taking the middle course because they don’t want to be indecisive after the July decision. The question is how long this stage will last. In essence, today’s decision avoids the appearance of standing idly by, and seems to have strengthened the policy stance of reducing the scale of debt purchases. The initial reaction of the Australian dollar was to jump, but from the perspective of the whole decision, the traders were a bit too advanced. (Golden Ten Data)
The Reserve Bank of Australia announced a plan to reduce the scale of debt purchases, which is only a small plan from a technical definition. Because the Reserve Bank of Australia stated that it will purchase government bonds at a rate of 4 billion Australian dollars a week, and at the same time extend the purchase period from November 2021 to February 2022. The Reserve Bank of Australia is basically taking the middle course because they don’t want to be indecisive after the July decision. The question is how long this stage will last. In essence, today’s decision avoids the appearance of standing idly by, and seems to have strengthened the policy stance of reducing the scale of debt purchases. The initial reaction of the Australian dollar was to jump, but from the perspective of the whole decision, the traders were a bit too advanced.
(Source: Golden Ten Data)
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