Economics
The Scale of Australia’s Bond-Buying Spree Is Closing in on the Fed’s
- RBA’s balance sheet to almost triple from start of year
- Purchase of A$2 billion long-dated bonds planned for Thursday
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The Reserve Bank of Australia’s new quantitative easing program is set to close in on the Federal Reserve’s when measured against the size of the economy, highlighting the scale of its latest stimulus effort.
The plan to buy A$100 billion ($71.9 billion) in bonds over six months kicks off with the RBA announcing it will purchase A$2 billion in federal government securities at Thursday’s auction. Governor Philip Lowe said Tuesday he estimates the RBA’s balance sheet will have almost tripled once purchases are completed by mid-2021, compared with the position at the start of this year.