Australian interest rates

RBA to reverse taper on lockdowns

David Llewellyn-Smith
Monday, 19 July 2021
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This feels like a leak:

  • The Sydney lockdown has no end in sight and will need to take cases to zero before being lifted.
  • The RBA will reverse its taper if it continues as economic damage mounts.
  • Sydney accounts for one-quarter of national output and Melbourne is shut as well.
  • If Sydney is not out of lockdown by mid-August the RBA will move.

Makes sense to me. If nothing else, the RBA should be watching semis carefully to ensure borrowing costs do not rise for states as they deal with the health crisis.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.