Australian interest rates

Did Fed throw in the kitchen sink or the towel?

David Llewellyn-Smith
Monday, 16 March 2020
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Via Damien Boey at Credit Suisse:

Over the past few days, we have seen the stimulus headlines come in thick and fast:

  1. The US government has come up with a coronavirus stimulus package with bipartisan support, with payroll tax recovery to be debated at a later date.
  2. The Fed has just cut rates all the way down to 0-0.25%, and promised to buy $700 billion in Treasury and mortgage bonds.
  3. The RBNZ has cut rates by 75bps to 0.25%.

And of course, the Australian government announced its fiscal stimulus package earlier last week.

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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.