How could a central bank even make a loss, when its job is printing money? The answer is that during the COVID crisis it turned traditional investment advice on its head – and here’s why.
How many people realise that the central banks’ great programme for reviving the global economy involves hand-picking which companies and sectors to help out?
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 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.
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.
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…