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.
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.
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.
Road tested. Quantitative easing worked in the US, and can work even better here.
There's nothing unusual about quantitative easing. Our biggest mistake would be to be to wait.
The Reserve Bank and government have the means to keep us from recession. They’ll need the will.
We've two options of keeping ourselves out of recession, neither of them easy. The government will have to abandon its determination to get the budget into surplus.
Mario Draghi, ECB president.
Quantitative easing cannot single-handedly save Europe.
Firing line. Corbyn’s economic plans face scrutiny.
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Can Draghi the gambler feel Europe’s pulse?
The European Central Bank’s decision to cut its interest rates further showed that the zero rate rubicon holds no fear, while one substantial bullet was kept in the barrel. It is a useful marker for markets…