The Conversation

Now we know. The Reserve Bank has spelled out what it will do when rates approach zero

Author: Stephen Kirchner, Program Director, Trade and Investment, United States Studies Centre, University of Sydney

When the cash rate hits 0.25% the governor will pause for breath. After that he will buy state and federal government bonds, pushing longer term interest rates down towards zero.Shutterstock

Last night, in a much anticipated speech broadcast live on the Reserve Bank’s website, Governor Phil Lowe laid out in very clear terms the circumstances...

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