Big four banks' forecast for RBA 3-year yield target, QE3

By Sophia Rodrigues

Published On 19 May 2021 , 01:44 PM

Earlier Wednesday, ANZ published its view on third round of RBA's bond purchase program. In a note Wednesday, ANZ chief economist David Plank and his team said they expect RBA to announce another A$100 billion of program in the same form at the first and second round. That would be 80/20 purchase split between Australian government and state bonds over a period of six months.

With this update, ANZ and Westpac expect A$100 billion over six months. CBA expects A$50 billon over six months. NAB expects some form of taper but hasn't finalised its view yet.

In case of the three-year yield target, ANZ, CBA and NAB expect the RBA to not extend target to November 2024 bond and retain April 2024 as the target bond. Westpac is the only one who expects the RBA to shift target to the November 2024 bond.

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