Chris Joye at Coolabah with the note:
After months of anticipation, the RBA finally delivered on its third quantitative easing (QE) program. Way back on 5 February 2021, when Coolabah first forecast a $100 billion QE3 program, the notion of a third stanza of QE extending into 2022 was not fashionable amongst economists at the time. (On January 22 we had predicted $100 billion of QE2, which the RBA delivered on 2 February.)
On 1 June 2021, we updated our QE3 forecast to a flexible, open-ended and state-dependent program, which was calibrated at the same weekly bond purchase pace as QE1 and QE2 (most other banks, save CBA, embraced this view later in the month). The idea had come from the insights published by The Australian Financial Review’s Economics Editor, John Kehoe, a key RBA media conduit, who first canvassed an open-ended bond-buying program following the RBA’s May 2021 board meeting, and then doubled-down on the proposal after the RBA’s June board meeting.
