Now is the time to borrow for infrastructure

Tuesday 24 March 2015

From Peter Martin comes news that the Australian Office of Financial Management (AOFM) – the body that manages Australia’s debt portfolio – has managed to borrow $4.25 billion for 20 years at just 2.865% – the lowest ever interest rate for long-term debt:

…the rate is far lower than the previous long term rate of 3.945 per cent struck for $7 billion of 22 year bonds issued in October.

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.