In many countries people are now paying more for bonds than they will receive at maturity. These negative interest rates should make it a good time for investment.
After a hectic first week for the new parliament, Michelle Grattan speaks with Deep Saini about Jacqui Lambie’s role in helping pass the government’s tax cuts, and a further cut to interest rates - now 1%.
The first week of the new parliament ends on a high for the government, with its $158 billion tax cut package passed, and the first stage of tax relief ready to flow in a week or so.
The Fed is in a tricky position as it signals it may soon cut interest rates to boost the economy, which also risks spurring runaway inflation and even an economic downturn.
Peter Martin, Crawford School of Public Policy, Australian National University
The Reserve Bank cut interest rates on Tuesday because we weren’t spending or pushing up prices at the rate it wanted. On Wednesday we might find things are worse than it thought.
It’s been 10 years since the U.S. signed into law a scheme to print money, essentially, and save the financial sector amid the sub-prime mortgage meltdown. Did it work? And who’s truly benefitted?
As with economic growth and wages, the RBA’s response seems to involve crossing as many fingers and toes as possible and publicly proclaiming that things are looking good.
President Trump has been attacking the Fed’s current policy of slowly raising interest rates. A former central bank official explains why that’s so troubling.