Lunatic RBA on QE options

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Via the Lunatic RBA’s recent appearance in Parliament:

It’s possible that we end up at the zero lower bound [for the cash rate]. I think it’s unlikely, but it is possible. We are prepared to do unconventional things if the circumstances warranted it. I hope we can avoid that. So what are the unconventional options?

When we look overseas, we see some central banks have very low interest rates and some countries have negative interest rates…That’s one possibility.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.