RBA extends QE amid improving growth outlook The RBA announced the extension of its QE programme by purchasing an additional AUD100bn government bonds, while leaving other policy measures, such as the cash rate and three-year yield targets, unchanged. The RBA clearly acknowledged the improvement in the growth outlook that has resulted from both the success of the government’s Virus prevention efforts and the monetary and fiscal policy support. However, the RBA did not change its forward guidance for the cash rate to held unchanged into 2023, probably to stabilise the market. We now expect the bank to start tapering the QE programme in 2H, after the additional AUD100bn bond purchase programme has been completed and on the condition that ‘herd immunity’ is achieved through vaccination.