RBA to defer tapering until economic recovery is back on track – Societe Generale

Analysts at Societe Generale note that the Reserve Bank of Australia (RBA) is likely to postpone its tapering announcement this Tuesday amid current Delta covid variant outbreaks in Australia.  

Key quotes

“We expect that the policymakers will announce to postpone the tapering until the recovery of the economy from the current outbreak is confirmed.” 

“The RBA will also revise its GDP forecasts to reflect the impacts from the current outbreak: cutting the growth in 2021 and raising the growth in 2022.”

“A good deal of uncertainties in both the economy and monetary policy due to COVID-19 outbreak is likely to persist until 4Q21.”