Last week saw the RBA sticking to its plan to buy back three-year Australian government bonds at a pace of $4 billion a week.
But the bank said it will do so until at least mid-February, as opposed to November that was announced previously.
The RBA will also keep its cash rate at 0.1%, while noting “this setback to the economic expansion is expected to be only temporary, and the Delta outbreak is expected to delay, but not derail, the recovery.”
The Aussie central bank has not raised rates for the last 130 months, longer than any other central bank in the past 40 years.
Over in Europe, the ECB (European Central Bank) President Christine Lagarde struck a similar tone, saying on Thursday that the bank would slow its pandemic bond-buying program in the coming quarter, but insisted that it wasn’t tapering.
The US Fed meanwhile is expected to taper its asset purchase program towards the end of the year or early next.
US Fed Jerome Powell refused to specify the exact timing at his Jackson Hole speech two weeks ago.
Economic calendar for this week
Australia
MONDAY: House Price Index. The previous figure was a 5.4% rise, and economists are now expecting a 5.5% rise.
NAB Business Confidence for August. Previous index fell by 8 points, as confidence deteriorated sharply along with the new lockdowns.
NAB Business Survey for August. Previous index fell by 14 points, driven by falls across profitability and employment.
TUESDAY: Westpac Consumer Sentiment for September. The index dropped 4.4% to 104.1 points in August, the lowest point in a year, according to Westpac.
WEDNESDAY: Australia’s employment numbers for August will be released by the ABS. In July, the unemployment rate was 4.6%, and the forecast for August is 5.0%.
International calendar
US (US time.)
TUESDAY: The all-important US inflation data for August will be released. The year-on-year Core CPI for July was 4.3%, and the market is expecting the same print in August.
WEDNESDAY: Both the Industrial and Manufacturing figures will be released. The US industrial production rose a seasonally adjusted 0.9% in July, the fastest pace since March.
THURSDAY: Jobless claims. Last figures came in at 340k.
Europe (European time)
WEDNESDAY: Industrial production for July. The June figures increased by 9.7% and the market is expecting that to decrease to 5.8%
FRIDAY: The all important Eurozone inflation will be released. In July, the figure was 0.7% and the market is expecting that to increase to 1.6% in August.
China
TUESDAY: China’s industrial production rose 6.4% year-on-year in July, and the forecast for August is a reduction to 5.8%.
Corporate calendar for this week
These companies are expected to make their ASX IPO this week:
MONDAY: Legacy Minerals (ASX:LGM)
TUESDAY: Heavy Minerals (ASX:HVY)
WEDNESDAY: Copper Search (ASX:CUS), Dalaroo Metals (ASX:DAL)
THURSDAY: Pearl Gull Iron (ASX:PLG), Star Minerals (ASX:SMS)
FRIDAY: Koonenberry Gold (ASX:KNB), SSH Group (ASX:SSH), Way 2 VAT (ASX:W2V)