It is all about the optics when it comes to today's policy decision
It is a taper by name but only scraping by just by the technical definition as the RBA says that it will purchase government securities at a rate of A$4 billion per week, but then deciding to extend that purchase period from November 2021 to February 2022.
The central bank is essentially trying to walk on middle ground here as they do not want to look indecisive following their take on things back in July but the question now becomes for how long will they be kicking the can down the road at this stage?
Essentially, today's decision avoids the look that they are sitting on their hands but it also seemingly looks like they are firm with their policy stance set out to taper.
But when you take a step back and review, does it really amount to much? I'm not sure. If anything else, I'd argue that this is perhaps a more 'indecisive' take by the RBA.
The aussie may have jumped on the initial reaction but I think traders are getting a little too ahead based on the optics of the entire decision.
If you look more closely, this is the RBA still signaling that it isn't changing its overall policy stance and shifting towards a more bullish outlook any time soon.