Goldman Sachs delay call has been upended by a more aggressive outcome hinted at by Westpac ... more QE temporarily:
- July's Minutes provided further context around the Board's decision to signal a tapering in the pace of QE purchases and fix the endpoint to the YCC program.
- While the YCC decision was widely expected going into the meeting, the Minutes showed there was some debate around the decision to taper QE taper purchases given the RBA remained "well short" of its inflation and employment objectives.
- Looking forward, despite signalling a taper in QE purchases beyond September at July's meeting, we note recent press reports suggest Governor Lowe may reverse this decision if lockdowns in Sydney and Melbourne are prolonged.
Remember this heads up from the WSJ to open this week?