The Reserve Bank Board meets next week on July 6. Following the Board meeting the Governor will make his usual Statement at 2:30pm and then speak at 4pm 'Remarks by Phillip Lowe – Today’s Monetary Policy Decision' which will be followed by media Q&A.
The Board has already informed us that decisions will be 1.0 made around the Yield Curve Targeting (YCT) Program and daily the Bond Purchase Program (QE).
With the economy having recovered much faster than the Bank’s expectations in the November Statement on Monetary Policy, it seems reasonable that the Board will decide not to extend the 'yield target bond' to the November 2024 bond.
We expect that the Board will decide to take a more flexible approach to its bond buying program than we have seen in the past. We think the Board will be committed to maintaining the current pace of purchases ($5 billion per week) until late in the year (around the December Board meeting).
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