RBA to reverse taper on lockdowns

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.

Houses and Holes
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