- Analytics
- News and Tools
- Market News
- Senior RBA Official expects smooth unwinding of balance sheet
Senior RBA Official expects smooth unwinding of balance sheet
David Jacobs, head of domestic markets at the Reserve Bank of Australia (RBA), said on Wednesday, he expects the balance sheet unwinding process to run smoothly, though are attentive to the challenges involved.
Additional quotes
“Its balance sheet starting to unwind pandemic bond purchases; around $20 billion of purchased bonds have matured.”
“Pace of these maturities will increase to around A$35–45 bln per year.”
“Around A$4bln of TFF funding has been repaid so far; large maturities are due ahead of September this year and June next year.”
“As its bond holdings fall, process of private sector absorbing more issuance might place some modest upward pressure on yields.”
“Decline in es balances will be particularly rapid as TFF rolls off; has potential to cause some strains.“
“ES balances will remain well above pre-pandemic levels for some time, so will be ample for the banking system’s payment needs.”
Market reaction
AUD/USD is testing daily lows near 0.6570 on the above comments, losing 0.53% on the day. The Aussie bears the brunt of a dovish RBNZ policy announcement and a cautious market mood.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
