5/23, 1:41 AM (Source: TeleTrader)
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RBA will 'start unwinding' its bond portfolio - Kent

The Reserve Bank of Australia assistant governor Christopher Kent stated at a Monday conference in Sidney that the RBA will slowly start "unwinding its $280 billion bond portfolio of five to 10 year maturities" due to the country's economy no longer needing the extra monetary stimulus.

Kent underlined that the bond purchasing program, otherwise known as quantitative easing, which was instated during the peak of the COVID-19 pandemc, is no longer needed due to Australia's stabilization of unemployment and interest rates in the preceding period.

"We have now entered the phase known as quantitative tightening, or QT (...) By allowing our bond holdings to gradually diminish over time as they mature, the initial stimulatory effects of those holdings - namely, downward pressure on government bond yields and the Australian dollar exchange rate - will gradually unwind," Kent said.

Baha Breaking News (BBN) / SP