Prime Minister Scott Morrision delivers a coronavirus update on Tuesday.
Lukas Coch/AAP
Never has a virus featured so prominently in a Reserve Bank statement.
Shutterstock
With skill and support where needed, the government can get us through this, but it’ll be the biggest challenge since the global financial crisis.
Professor Stephanie Kelton at Adelaide University in January.
Image: John Staines
Modern Monetary Theory allows governments more freedom to run deficits, freedom the Australian government might need.
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
In a speech broadcast live on the Reserve Bank website, the governor explained how quantitative easing would work. He won’t try it until the cash rate hits 0.25%.
MARTIN is helping the Reserve Bank see beyond its headquarters in Martin Place. And it’s open source, giving outsiders an insight into its thinking.
Shutterstock
MARTIN stands for “Macroeconomic Relationships for Targeting Inflation”. The bank’s new computer model says there’s much it can do to boost the economy after its cash rate hits zero.
Sweden’s central bank ways it will no longer invest in assets from governments with large climate footprints, even if the yields were high.
Shutterstock
Central banks are increasingly taking into account climate change in deciding how to invest.
The economy is weak, but it isn’t a crisis. Treasury Secretary Steven Kennedy addresses Senators on Wednesday.
Mick Tsikas/AAP
Treasury Secretary Steven Kennedy says its up to the Reserve Bank to boost the economy. In normal times, that’s not his job.
The prime minister says banks are “basically profiteering”. It’s a difficult case to make.
Joel Carrett/AAP
Evidence for the prime minister’s contention that the banks are “profiteering” is thin on the ground.
Interest rate cuts often lead to a boost in construction jobs as developers anticipate better conditions for selling properties.
Stefan Postles/AAP
Record low interest rates will almost certainly drive up property prices. But they will also drive down unemployment and boost investment generally.
The bank will keep cutting until the economy improves and unemployment turns down. There are few signs of it happening yet.
Joel Carrett/AAP/RBA
If needed, Governor Lowe will cut rates to near zero, and then effectivly cut them further.
Some things went wrong and some things went right. The resulting current account surplus is neither good nor bad.
Shutterstock/ABS
Australia is becoming more like the United States. Increasingly, we invest overseas. Our domestic economy is weak.
Once, emulating Germany would be something to be proud of. Not at the moment.
Shutterstock
With a relatively low debt to GDP ratio, Australia was never at risk of becoming Greece. But Germany, with negative interest rates and scant prospects for economic growth, is an open question.
Reserve Bank Deputy Governor Guy Debelle, Governor Philip Lowe, and assistant governors Luci Ellis and Michele Bullock at Friday’s parliamentary hearing in Canberra.
Lukas Coch/AAP
The Reserve Bank’s best case scenario is that its forecasts are wrong.
We are being sucked in to something Trump started.
Shutterstock
Australia has more to fear than most countries from a global trade and currency war. All eyes will be on the Reserve Bank governor Friday as he attempts to outline what might happen.
If you’re going to stimulate the economy, it’s wise not to wait.
Shutterstock
A bold government would have delivered stages one, two and three of the tax cuts at once. Boldness is what we need.
Historically those nominated to the US Federal Reserve board have had distinguished credentials. Donald Trump favours nominees that agree with him.
US Federal Reserve
Donald Trump has had four of his nominations for the US Federal Reserve rejected. Now he has another two.
Philip Lowe is grabbing a rare opportunity to push the floor under unemployment lower.
DARREN ENGLAND/AAP
Philip Lowe is on the cusp of permanently changing Australia. He stands a good chance of being one of the best governors since the first, who ushered in the goal of full employment.
Two cuts in a row, and a good chance of more to come.
Brendan Esposito/AAP
The Reserve Bank has cut the official interest rate to a new low of 1%, reflecting continuing concern over the slow economy.
Reserve Bank governor Philip Lowe will announce his rate decision at 2.30 pm eastern time onTuesday July 2.
JAMES ELSBY/AAP
By himself, Reserve Bank Governor Philip Lowe may not be able to keep us out of recession.
Road tested. Quantitative easing worked in the US, and can work even better here.
Shutterstock
There’s nothing unusual about quantitative easing. Our biggest mistake would be to be to wait.