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21 Jun 2013
Flash: Is September the targeted month to end easing? – NAB
FXstreet.com (New York) - According the NAB Research Team, “Currency markets have stabilized in the past few hours, the AUD tracking sideways and the USD giving up some of its gains – the catalyst for these moves was Fed Chair Bernanke’s post FOMC press conference earlier this week.
Bernanke said “If the incoming data are broadly consistent with this forecast, the committee currently anticipates that it would be appropriate to moderate the pace of purchases later this year”.
He added, “and if the subsequent data remain broadly aligned with our current expectations for the economy, we will continue to reduce the pace of purchases in measured steps through the first half of next year, ending purchases around mid-year.” According to Bloomberg polling, the majority (44%) of 54 economists now expect bond purchases to be scaled back to $65bn from the 11-18 Sep meeting; 15% expect tapering to start in October; 28% said December; and 13% think they will wait until next year.
Bernanke said “If the incoming data are broadly consistent with this forecast, the committee currently anticipates that it would be appropriate to moderate the pace of purchases later this year”.
He added, “and if the subsequent data remain broadly aligned with our current expectations for the economy, we will continue to reduce the pace of purchases in measured steps through the first half of next year, ending purchases around mid-year.” According to Bloomberg polling, the majority (44%) of 54 economists now expect bond purchases to be scaled back to $65bn from the 11-18 Sep meeting; 15% expect tapering to start in October; 28% said December; and 13% think they will wait until next year.