A piece in the Australian Financial Review today on the Reserve Bank of Australia Statement (from Lowe) Tuesday.
- Markets barely blinked after the Reserve Bank boss Philip Lowe reiterated in his statement on Tuesday that the central bank would decide at its next board meeting whether to retain the April 2024 bond as the benchmark bond for the three-year yield target, and whether it should buy more bonds in a round of government bond-buying after the completion of the second $100 billion round of purchases in September.
- Now, the market’s sangfroid is interesting, because this is pretty explicit taper talk from Lowe.
The piece goes on with possible reasons Australia is not experiencing a taper tantur:
- RBA measures were always specifically time-limited, temporaty
- Investors focus is the cash rate as overwhelmingly the most important aspect of monetary policy and Lowe said once again its not going higher until 2024 at the earliest.
Here is the link to the piece for more detail, worth checking out (may be gated)
Meanwhile, AUD ticking up a little:
