According to reports, Ian Harper, dean of Melbourne Business School and member of the Australian central bank committee, said the Australian economy faced a severe contraction in the third quarter and "significant uncertainty" in the fourth quarter due to the prolonged blockade of big cities.

But he said the surge in vaccination rates raised hopes that economic growth would rebound most strongly since the outbreak.

The RBA decided this week not to adjust its plan to reduce bond purchases in September because it amounted to "fine-tuning" monetary policy and risked releasing more stimulus as the economy emerged from the blockade, Harper said.

"We may have recorded negative numbers for the quarter to September. GDP may shrink by as much as 1 per cent. It's already deep and intense, "Harper said.

He said that given that there are already enough stimulus measures in the economy, there is no reason for the Reserve Bank of Australia to suspend undersized government bond purchases this week.