Dr Debelle, who warned the economy faced a gradual and uneven recovery from the recession, told an Australian Industry Group virtual conference the bank could seek to lower the structure of a range of interest rates across the economy without taking the cost of money negative.
Loading
This would also put downward pressure on the Australian dollar which, if it fell, would help the overall economy by making exports more competitive while also giving a financial advantage to domestic producers against imported goods and services.
Such low rates would also reduce the interest bill for borrowers, including governments, with Dr Debelle giving the green light to the federal and state governments to use their upcoming budgets to sink more mone…
Read the full article at: https://www.smh.com.au/politics/federal/not-quite-less-than-zero-rba-looks-at-lower-rates-and-more-borrowing-20200922-p55y2q.html
