Chris Joye at Coolabah with the note:
In the AFR this weekend I write that after months of debate about whether the Reserve Bank of Australia would increase or decrease its stimulus in recognition of the COVID-induced recession, Martin Place delivered on its promise to maintain a “flexible” and open-ended approach to its government bond purchases (aka quantitative easing).
To make matters more interesting, the Australian Prudential Regulation Authority shocked the banking system on Friday by announcing that the $140 billion Committed Liquidity Facility must be replaced by purchases of government bonds as is standard across the rest of the world. As we previously speculated, closing the CLF perfectly dovetails with the RBA’s bond buying.
