Economics
Goldman, JPMorgan Say RBA May Start New A$100 Billion QE
- RBA may spend up to A$2 billion a week buying debt: JPMorgan
- Australian bonds surged, led by 10-year after Lowe’s speech
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The Reserve Bank of Australia may buy up to A$100 billion ($71 billion) of bonds in a renewed effort to revive the nation’s coronavirus-battered economy, according to Goldman Sachs Group Inc. and JPMorgan Chase & Co.
A new “quantity-based” easing program is likely after RBA Governor Philip Lowe said Thursday that the nation’s 10-year yields were higher than “almost everywhere in the world, according to JPMorgan. Goldman sees an 80% chance for an easing package at the central bank’s Nov. 3 meeting.