Via Goldman’s Andrew Boak who says that the RBA’s automated macro model, MARTIN (formerly known as a “ruler”), suggests that:
“Most strikingly, the model suggests the RBA would need to implement a minus 1 per cent cash rate if it wants to achieve its unemployment and inflation goals over its 2-3 year forecast horizon.
Assuming the RBA refrains from implementing negative rates, we estimate an equivalent amount of stimulus could be delivered by lowering rates to their effective lower bound (0 to 0.25pc) and implementing a QE program worth around $200bn.