Bloxo: RBA to do “emergency” QE

Better late than never, I guess. Bloxo via the AFR:

In June 2019, the RBA published its new estimates of unemployment. Whereas previously the central bank had thought that unemployment was around 5 per cent it was now estimating it to be around 4.5 per cent.

…In making this reassessment the RBA gave up on a previous pretence that Australia might be different. For many years, Australia had higher interest rates than elsewhere, but no longer…As a result, earlier narratives that the RBA had used to raise concerns about cutting further, including that rate cuts would not do anything useful, that rates were not the constraint on businesses and that further cuts could pump prime already high household debt, were largely cast aside.

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