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The Reserve Bank of Australia (RBA) could likely extend its A$100 billion ($77.05 billion) government bond-buying programme beyond April when it meets next month, the National Australia Bank (NAB) Chief Economist Alan Oster wrote in a note on Tuesday.

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“RBA to announce an extension of its QE programme by an additional A$50 billion over another six months to help bring the unemployment rate down to 5% from around 7%.”

“While the outlook has improved, the (coronavirus) pandemic has still been a large hit to the economy such that exceptionally easy policy is warranted.”

“At some stage the RBA is likely to become unable to maintain this position as the recovery unfolds – we think the RBA will reach that point around mid-2021.”