Halt bond buying The RB may suspend quantitative easing in February

Philip Lowe, governor of the Australian Central Bank (RBA), said on the 16th that if spending and employment growth are higher than expected, the bond purchase plan of 4 billion yuan per week (Australian dollar, the same below) will end as soon as February next year.

The Australian reported that in a speech by Wagga Wagga in NSW on the 16th, Lloy said that at next year's New Year's central bank meeting, the RBA will consider adjusting the speed of quantitative easing (a policy of central banks injecting funds into the economy to stimulate growth). The RBA is likely to move more quickly to contain unconventional monetary policy measures taken to help the economy weather the Covid-19 health crisis.

The first option discussed is to further scale back bond purchases from the current $4 billion per week plan, which is expected to end in May. The second option is to scale back further and then review the situation again in May. The third option is to stop buying bonds altogether in February. Lloy said.

Lloy also pointed out that the best way to solve Australia's housing affordability crisis is to build more housing, and he once again downplayed concerns that inflationary pressures could trigger interest rate hikes as early as next year. (Noi Compiled)