Westpac with their outlook for Reserve Bank of Australia policy in the new year. This in brief from a more detailed note:
- The RBA's review of its bond buying program in February is likely to see a scaling back to a $2 billion weekly pace until May.
- Progress towards its objectives by February will be encouraging but the benefits of an immediate end to the program would not justify the potential costs.
- By May, the case will be clear that a very successful unconventional policy has done its job and the program can be wound up.
