RBA cuts, launches QE

From the RBA just now:

At its meeting today, the Board decided on a package of further measures to support job creation and the recovery of the Australian economy from the pandemic. With Australia facing a period of high unemployment, the Reserve Bank is committed to doing what it can to support the creation of jobs. Encouragingly, the recent economic data have been a bit better than expected and the near-term outlook is better than it was three months ago. Even so, the recovery is still expected to be bumpy and drawn out and the outlook remains dependent on successful containment of the virus.

The elements of today’s package are as follows:

  • a reduction in the cash rate target to 0.1 per cent
  • a reduction in the target for the yield on the 3-year Australian Government bond to around 0.1 per cent
  • a reduction in the interest rate on new drawings under the Term Funding Facility to 0.1 per cent
  • a reduction in the interest rate on Exchange Settlement balances to zero
  • the purchase of $100 billion of government bonds of maturities of around 5 to 10 years over the next six months.

Under the program to purchase longer-dated bonds, the Bank will buy bonds issued by the Australian Government and by the states and territories, with an expected 80/20 split. These bonds will be bought in the secondary market through regular auctions, with the first auction to be held this Thursday for Australian Government securities. Further details of the auctions are provided in the accompanying market notice.

The Bank remains prepared to purchase bonds in whatever quantity is required to achieve the 3-year yield target. Any bonds purchased to support this target would be in addition to the $100 billion bond purchase program.

At today’s meeting, the Board also considered an updated set of economic forecasts. The global economy has been recovering from the initial virus outbreaks, with the recovery most advanced in China. Even so, output in most countries remains well short of pre-pandemic levels and recent virus outbreaks pose a downside risk to the outlook, particularly in Europe.

In Australia, the economic recovery is under way and positive GDP growth is now expected in the September quarter, despite the restrictions in Victoria. It will, however, take some time to reach the pre-pandemic level of output. In the central scenario, GDP growth is expected to be around 6 per cent over the year to June 2021 and 4 per cent in 2022. The unemployment rate is expected to remain high, but to peak at a little below 8 per cent, rather than the 10 per cent expected previously. At the end of 2022, the unemployment rate is forecast to be around 6 per cent.

This extended period of high unemployment and excess capacity is expected to result in subdued increases in wages and prices over coming years. In underlying terms, inflation is forecast to be 1 per cent in 2021 and 1½ per cent in 2022. In the most recent quarter, year-ended CPI inflation was 0.7 per cent and, in underlying terms, inflation was 1¼ per cent.

The Board views addressing the high rate of unemployment as an important national priority. Today’s policy package, together with the earlier measures by the RBA, will help in this effort. The RBA’s response is complementary to the significant steps taken by the Australian Government, including in the recent budget, to support jobs and economic growth.

The combination of the RBA’s bond purchases and lower interest rates across the yield curve will assist the recovery by: lowering financing costs for borrowers; contributing to a lower exchange rate than otherwise; and supporting asset prices and balance sheets. At the same time, the RBA’s Term Funding Facility is contributing to low funding costs and supporting the supply of credit to the economy. To date, authorised deposit-taking institutions have drawn $83 billion under this facility and have access to a further $104 billion.

Given the outlook for both employment and inflation, monetary and fiscal support will be required for some time. For its part, the Board will not increase the cash rate until actual inflation is sustainably within the 2 to 3 per cent target range. For this to occur, wages growth will have to be materially higher than it is currently. This will require significant gains in employment and a return to a tight labour market. Given the outlook, the Board is not expecting to increase the cash rate for at least three years. The Board will keep the size of the bond purchase program under review, particularly in light of the evolving outlook for jobs and inflation. The Board is prepared to do more if necessary.

Awesome stuff. The RBA is on our side at last. Bonds bidly, AUD under pressure.

David Llewellyn-Smith


    • it will what always does. will fall from few minutes and then off to the races. 72c by 4pm.😒

    • TFF program giving over 100 billion to banks for emergency funding, rba buying govt bonds now to the tune of 100 billion (even thought strong demand from foreigners) and aud is still rock solid. This is killing me.

  1. SnappedUpSavvyMEMBER

    and this: CBA launches moratorium on forced home sales until September 2021

    LOL house prices to the moon, actually the moon will be the launching pad for mars

      • But the sky is going to fall in according to this blog’s resident mega-bear bcnich…

        Seriously house prices to flatline then boom again into any economic recovery. Even without international buyers. We’re a country of greedy housing speculators and the RBA is here to support the banks that lend to them to keep the music playing.

        • This is far more likely than anything the resident loon bcn predicts. The irony is that reausa’s character that he adopted years ago has been the most right. Load up on cheap debt and buy as many houses as you can!

          • All I am saying is he nailed it for Feb/Mar correction. We all laughed at him at the time when he called it but we all accepted that he nailed it.
            I am purely refering about the Feb/Mar prediction.

            We all make predictions and many times we get it wrong. Nothing wrong with that. We are here to share views. It’s easy to critisise others.
            Where are your contributions in terms of putting forward your view how you think any market will play out? You contribute nothing but critise others.

          • Yeah you’re right Burb, I shouldn’t take a shot at him personally. If I could edit it out I would.
            I’m just a tired bear who’s fed up with the corrupt system in this country. Nothing against bcn personally and I retract the cheap shot at him.

          • Would that be the housing to crash this year prediction, or the stock market to crash prediction?

            The latter happened because of a black swan event that had nothing to do with the reasons stated, then bounced back to form all time highs. Property in the middle of covid has softened in Melb, Sydney is going gangbusters.

            It’s honestly funny to read his (?) comments, it’s the investors chicken little.

          • Tell me what part of this on March 3rd 2020 is right?

            “The debt levels are now so extreme that the momentum down is too powerful.
            When the economic crash comes in next 2 months cash rate will be zero
            That’s it home loan rates are 3% already
            You wait in 6 months, the falls are coming
            The bubble is going to burst before June 30 this year”

          • Agreed. Bcnich was spot on on for Q1 2020 being one for major upheaval/change/disaster based on sunspots or solar minimum, things i assumed was hokum. I may not understand his methods, but i appreciate his contribution on this forum.

        • he was talking about major event that will bring markets down. Does it matter what/how? If one followed his advice and held until markets fell one would have made a fortune.
          He nailed it. I am not saying he will be right again. I am not sure. But his sunspots were right for Feb/Mar correction. Where were you to call it how it would have played back then?
          We are all experts……. in hindsight.

          • Nailed what? He was and is a doomsayer just waiting for reality to eventually align to his worldview. It’s the classic a broken clock is right twice a day.

            His entire thesis is that mortgage rates will go up to break the property market and everything else in this country, driven by global bond defaults. Yet every central bank on the planet is buying up any and all assets and every central bank has said cash rates aren’t going up for years.

            I don’t doubt this will all end in tears at some point but all this could be 20 years away, not 6 months.

          • Common sense says that while lower rates may fix teh thing, it does not seem to fit with the current vibe.

        • …boom again into any economic recovery

          There won’t be an economic recovery for just about everyone, but property prices will boom regardless. How does that happen?…

          Of course, we’re Australia baby!

        • It’s a bit rich to be declaring Victory now. For all we know Bcnich will be right before year is out. Who knows what this US election is gonna bring. I suspect Trump will do his best to steal it? Then what?

          Europe in lockdown again, nothing is clear from here forward. Even if Straya remains Covid free we don’t live in a vacuum. I listen to John Adams, Bcnich, Harry Dent etc.. because I value their perspectives. I don’t know if they will be correct or not, but I like to plan for worst case scenario and position accordingly.

          Incidentally Kevin O’Leary in the US talks of keeping debts low for same reason to weather s storm. I don’t have much debt, maybe I could have a much bigger house that makes me appear more wealthy? But I like to keep risk low, especially right now.

          It takes guts to make a prediction and set a date and stick to it.

          • Agreed nothing is clear, and anything is possible. Everyone is entitled to put whatever prediction forward they want, although when anyone to be fair repeatedly spams this blog with low probability doomsday predictions, you are also asking to be questioned on them.

          • is china our black swan ?
            its the unknown qty at present, and they are an antsy bunch, just looking to teach us a lesson.
            If we don’t ‘just give in’ to them, it means we stand our ground, and consequences continue

          • Yep, MB makes for interesting reading however probably not the best place for investment advice. Especially on property.

    • and then some pr1ck will come out on TV will talk of “fundamentals” this “fundamentals” that. This is plain market manipulation. And these loans don’t even show as bad loans on the bank’s books – as far as I understand.

      • RobotSenseiMEMBER

        I look forward to seeing the next property “expert” in my newsfeed telling everyone about their secret dossier on the state of the property market in the next 12 months.
        The fundamentals are out the window. Nobody has a clue. If they themselves don’t see it, they’re the biggest fools of all.

    • C Diminished Chord

      AS I’ve been saying – the banks are creating new mortgages to take on all the defaults and allowing people to remain in their homes on minimal rent – this prevents forced sales and is driving the “new mortgage credit” index giving the appearance of a mad rush for housing while ultra low volumes maintain the charade.

      I put this to a banking finance guy yesterday during Cup – distanced – shenanigans and he was just like – yup – well done.

      Thats what it is.

  2. Pressure on the AUD will continue to be minimal until such time as we’re officially declared a banana republic. Not a minute sooner.

  3. Am getting out of cash completely

    Give me ideas

    Gold physical
    Well located real estate
    Value shares eg agl


    • If anyone can find any value in any individual share, I’m all ears. Everything’s all been pumped up to super high levels.

      • Value? Pffft … that’s so ’80s, bruz.

        These days it’s the ‘greater fool trade’ — buy teh stock, sit on it and sell to next chump. Easy as …

      • Unless I did my calcs wrong, I think the payments were ~1%…

        Unless, yeah, you factor in capital appreciation.

        I think the conventional govt bond ETFs are still paying 2-3% pa? Plus capital appreciation.

        • how do you expect to make 2-3% in a conventional government bond etf when rates are below 1% – as I look now the 10yr ACGB is 0.76%.

          • The longest dated semi-govt I could find in its holdings was QTC 1.75 July 34s yielding 1.53%. Other long semis were QTC 6.5 March-33s, yielding 1.23% and a NSWT-Corp 6% May-30 yielding 0.85%. The longest ACGB I could find was a June-35 bond, yielding 1.08%. I guess you get a bit of carry and roll going out that far, but not much. Plus the portfolio is mainly made up of sub 10-year stuff, well below 0.5% yield.

            To get those returns you’re banking on capital gains right? — i.e. lower yields across the curve – meaning QE. But those returns won’t be baked into the curve. At least at a cursory glance.

    • If money is losing its value, then real things matter more.

      The more useful and productive they are, the more they are ‘worth’, and the money price is, or should eventually, arrive accordingly; this includes services and ideas,

    • I’m long quality real estate. Classic cars, NASDAQ.

      I would allocate a small portion maybe 3-4% to BTC or Gold as a hedge. I am yet to do this. May buy BTC when PayPal makes it possible.

      Outside of cars I buy rare car parts, unique / rare / desirable..

      I’m going to invest in an outdoor studio for space to have my guitars, work, guest room etc.. gonna build a garage to house my toys, and buy solar panels to cut energy costs.

      I would start looking at some regional real estate also.


      In Victoria I think Ballarat and Bendigo are lower risk but higher reward. Maybe even East Gippsland and Mount Macedon too.

      My sister bought an IP in Mount Gambier for $180k odd. Rent is ok, not hugely positive return but something.

      I personally don’t like real estate as an investment because of poor returns compared to high taxes/holding costs.

  4. Why all the excitement? It’s only 15 basis points. Not like it has dropped by 150 basis points. 15 basis points is just for optics, so the RBA can appear to be doing something or it wants to think it’s still in control. It’s going to do jack all.

    • ” It’s going to do jack all.”

      Ah … but the ‘models’ say different. Just wait and see 😉

    • 27 bucks a month saved on the average mortgage supposedly……enough to rotate into another million dollar investment property, surely.

    • Jumping jack flash


      But it is what they don’t say that matters.

      What will happen now is the plebs who have accessed their super early will leverage into an environment of falling mortgage rates and reduced lending standards.

      It’ll be the rocket under debt that we needed for the past 10 years. Already the debt is growing at an astounding rate. It needs to keep going. They’ve bought about 6, maybe 10 months of adequate debt growth, it remains to be seen whether this is enough to fire up the debt engine that powers the New Economy.

      • Yes, then when it runs out of steam yet again, where to next? Negative mortgage rates? My imagination is bereft of ideas…..I’m sure theirs isn’t of course!

        • Jumping jack flash

          In 10 months maybe Captain Phil has come to terms with NIRP and decided there is no other choice.
          In 10 months maybe things are humming again from the 800K of new debt per household!

          800K is an extraordinary amount of debt and I’d say it could probably get you a slightly above average place that most people would like to live in, in most capital cities.

    • How big a loan can someone who earns $1 a year service on an interest only loan at 0%???? The answer is infinity.
      In interest only land there is a BIG difference between 0.25% and 0.1% it matters.

      • Absolutely, they have more than halved the amount you have to pay on IO loan!!!!
        That’s always assuming that the banks pass this on of course……watch this space…..

  5. Mr SquiggleMEMBER

    Doesnt expect to change the cash rate for three years?

    Expects positive GDP with the borders shut? I guess we dont need all those migrants then do we? All we ever needed was incentives to stop saving and spend…enter negative real interest rates

    • rofl at “3 years”. They said that 9 months ago right?
      3 years is going to be “forever”. Just like every place else that adopted QE.

  6. Finally that is decent policy.
    Removing interest on reserves is a good decision.
    $100B is significant.
    However I think it should have been open-ended like QE3. Buy $15B p/m until unemployment is under 5% and there is wage growth.

    • So, there is a link between the RBA buying bonds from financial institutions and employment levels?

      Staggering. Future generations will laugh at today’s economics establishment.

      • pfh007.comMEMBER


        Don’t be so negative. It is hard for folks raised on a solid diet of free capital flow and free trade ideology and loads of wonderful curves and slopes to let go. The world is like a machine and if it does not respond to the pulling of levers scientifically designed by reference to smooth curves and slopes it is not their fault.

        Luci is down by the creek looking for platypus as we speak.

        • Are you an MMTer now 007?
          Do you also think lowering interest rates has an indeterminate effect on demand & unemployment like MMTers do?

          • pfh007.comMEMBER

            No Sweeper,

            Unlike you and your endless faith in the mechanics of debt peddling I believe that a public monetary system should be operated in the interests of the public and if there is a need for money creation it should be done democratically and distributed equitably to all Australians who can then choose whether they wish to consume, save or invest. Only those who invest can expect a return and for that they should expect some risk.

            A bit of trickle up would make a nice change from your private bank centered trickle down theories and the risk free punts on asset prices they encourage.


          • pfh007.comMEMBER

            It is not an “non answer”. It is just an answer that you find very inconvenient because it highlights the absurdity of your interest rate lever pulling fetish.

            It is perfectly clear from my answer that if expansion of the money supply is distributed equitably and democratically people will get the choice whether they want to consume, save or invest.

            Interest rates would be nothing more than a function of what it takes to persuade the general public to choose to invest rather than to save.

            If you want to drive down interest rates you could expand the money supply as that would increase the funds in the hands of the general public and potentially they would have more money they might feel comfortable investing. But you don’t like that because you don’t think the general public should get to choose between consuming, saving or investing. You want someone making those decisions for them. You want cheap money available for speculators.

            Ironically in the current Sweeper approved model – there is little productive investment and instead speculators are offered free money to chase asset prices to the moon. Your model is producing the mess you are complaining about.

            You could at least be a bit more honest about your preferences.

          • if they bought the bonds direct from the public it would have exactly the same effect. I think the BoE did that at one point. It would just end up as bank reserves, with exactly the same reduction in bond yields.

            How is this a giveaway for the banks?
            The RBA will be buying the bonds at market prices. No giveaway there
            the excess reserves created will not earn any interest. No giveaway there.
            Bank safe assets will now have lower yields.
            Banks margins will further be squeezed.

            The banks are in a worse position today after this announcement than they were in yesterday.
            Yet you frame this as “the public v the banks”
            When the RBA has explicitly said its about unemployment. You just refuse to accept that because everything is framed in terms of banks.

          • pfh007.comMEMBER

            Now there is a non-answer.

            You completely ignored my direct response to your whinge that I was ignoring the magic of low interest rates.

            Of course it is the public v the banks. The public are being forced into relationships with private banks because they are denied access to MyRBA accounts.

            What is the significance of the RBA refusing to buy bonds from the government in the primary market?

            It is because the banks hate the idea of not getting paid interest. By parceling up what would otherwise be a larger non interest paying RBA bank balance sheet the banks get an interest accruing bond.

            You seem to think that is fine and dandy because interest rates are low but they are only low because THIS approach to a public monetary system is fundamentally broken and the real economy is drying up and dying off and on verge of deflation.

            As for not being paid interest on reserves – the banks ARE paid interest on reserves.

            Once again it is because the banks want to mooch on the public. They want to be paid interest either way – on their reserves or on government bonds.

            How do you rationalise that? Being paid interest on risk free deposits at the RBA.

            How do you justify using bonds as an alternative to a much bigger RBA balance sheet (i.e. if MyRBA was introduced)

            This is the very issue that McFarlane was talking about and despite his puzzlement that it was broken and no longer working he kept insisting that it was a good idea.

            WHY should banks get paid interest on the reserves and why should the RBA balance sheet get effectively bundled up into interest accruing securities and sold off to bankers and their mates?

          • huh?
            did you read the statement. They’ve reduced interest on reserves to nil. They are no longer going to earn interest on reserves.

            “the banks get an interest accruing bond”

            They are selling their interest bearing bonds for non-interest bearing bank reserves.
            It isn’t the giveaway you are claiming at all.

            You have ignored the point that buying bonds directly from the public would have no material difference. And if they bought from Treasury at issuance it would still end up as non-interest bearing bank reserves when Treasury spent the money.

          • pfh007.comMEMBER


            As we approach ZIRP whether or not interest is paid on the reserves becomes of marginal interest as the yield on bonds is being driven down by bidding up the price of bonds.

            My point and criticism of your position remains valid.

            The model of driving money creation via private banks is fundamentally broken. I certainly feel for the banks and their compressed margins. They will just have to make do with more fees and charges.

            That the RBA are giving forward guidance of no rise in the cash rate tells you everything you need to know.

            They know they have nothing to offer and yet you are applauding them!

            At best their interventions might encourage governments to borrow up and spray some cash at party donors but as we have seen the politicisation of Polly spending is out of control or woeful.

            Extending deposit accounts at the RBA to non-banks and the general public and using them to inject money at the ‘base’ is the best way to get more people holidaying on the Gold Coast and also more money into productive investment.

            Your banker centres model is out of gas.

            You need to have some faith in democracy and the 70%.

            Like the pre Keating ALP used to.

  7. happy valleyMEMBER

    The RBA happy clappy cu.ts and the likes of Bill Evans are now having economic orgasms as they prove how f.cked Straya is. Enjoy that.

  8. happy valleyMEMBER

    If this produces one job or any inflation (apart from house prices to the moon because short a.se Johnny removed those from the CPI), I’ll eat my hat.

  9. pfh007.comMEMBER

    Too funny!

    “..The combination of the RBA’s bond purchases and lower interest rates across the yield curve will assist the recovery by: lowering financing costs for borrowers; contributing to a lower exchange rate than otherwise; and supporting asset prices and balance sheets. At the same time, the RBA’s Term Funding Facility is contributing to low funding costs and supporting the supply of credit to the economy. To date, authorised deposit-taking institutions have drawn $83 billion under this facility and have access to a further $104 billion…”

    Lower than otherwise?

    And manufacturing will move back onshore on the basis of that?

    They really have no clue.

    But the important take away is there NO MONEY for you unless you are prepared to gobble down some debt peddler product lines.

    But don’t blame the RBA or the private banks.

    No sireeee!

    This mob is responsible.



      • pfh007.comMEMBER

        Yes – the MacroPru Crew are clearly responsible.

        After all what could possibly make more sense than APRA trying to block the very policy outcomes that the RBA and the government have made clear they are trying to achieve.

        I am never sure if the people who claim that APRA should be trying to hose down the asset prices bubble that the RBA are determined to inflate are just taking the mickey.

        It is not as though the RBA were not openly laughing at the thought of MacroPru getting in their way.

      • pfh007.comMEMBER

        The experience of the last 20 years as Central Banks have ploughed on following your recommendations to double down and double down again is what makes it wrong.

        The funny thing is that because you support the nationalization of the private banks it is clear that you know it is wrong as well.

        You know how important the public money power is.

        If you had your way and we had bank nationalization (and all the public ownership of the means of production that goes with it) you know we would not be fretting about deflation.

    • Jumping jack flash

      “And manufacturing will move back onshore on the basis of that?”

      No, they must have decided that manufacturing useful items skillfully and selling them for profit to the world was a lot harder than just waiting around for someone to borrow a ton of debt and hand it to you.

      They’ve gone all quiet on the “advanced manufacturing”. Not too surprising, it was far too hard. They must have realised that they’d gone in waaaay over their heads and got to the point where they actually needed to know some things about manufacturing, and about setting up and running a manufacturing business.

      But, maybe once the borders reopen they can import a factory’s worth of people who “know how to make jobs” in Australia, and maybe they can set up the “advanced manufacturing”?

  10. One of the more surreal, dovetails well with the budget
    What da f does the unemployment paragraph mean? Doesn’t clearly parse, just the classic inane jawbone?
    They still think they can do anything, outside of the only thing they could do which is drop CPI if it was really high by raising rates?
    Who are these people, surely we can do better especially now they are unemployed and work for peanuts: https://edition.cnn.com/2020/10/31/business/costco-coconut-milk-monkey-labor-trnd/index.html

  11. What next? Drop by .05 next time? Keep halving each time, I guess? I suppose as long as you are taking a few bucks off the average punters mortgage payment they are all for it and will cheer you on.

  12. truthisfashionable

    I reckon this is the most interesting bit:
    “For its part, the Board will not increase the cash rate until actual inflation is sustainably within the 2 to 3 per cent target range. For this to occur, wages growth will have to be materially higher than it is currently. This will require significant gains in employment and a return to a tight labour market.”

    A tight labour market and opening the boarders aren’t going to mix. Is this the RBA calling out government and treasury to abandon the people ponzi?

    • Jumping jack flash

      It may be possible if the debt expands fast enough and enough spills out of houses and into the wider economy.
      If its going to do it, this is the policy to get it done

    • But they can’t do that? Sure .gov.au can, but RBA can’t, so maybe no real independence given it is their statement. The only `good` thing RBA can do is drop consumer price inflation by raising interest rates, and talk creatively. The statement is evidence of impotent insanity.

  13. Jumping jack flash


    And from looking at that chart that was posted earlier today showing the surge in new debt this is the policy we need, and have needed for the past 10 years!

    Early super access, up to 40K per household, will leverage nicely into 800K+ at 95%LVR, or more maybe? Factor in the lower interest rates and the reduced lending standards.

    800K or more of new debt per household will be a veritable tidal wave of debt rushing through the economy.
    There is no risk if the debt expands fast enough, only riches for all. Everyone gets rich from someone else’s debt at the same time.

    The only danger will be if they panic once things start turning good and raise interest rates like in 2007/2008, and crash everything.

    The necessary inflation surge as a result, is actually a good thing. Even though everything will suddenly get a lot more expensive, if you’re lucky enough to be holding onto an 800K wad of someone else’s debt, you should be ok.

    Get that debt into you, throw it up the pyramid, and then wait until someone else does the same for you. Its the way to easy, unimaginable riches in the new economy, and everyone gets rich (eventually). Guaranteed!

    • RobotSenseiMEMBER

      This sounds like that betting system where you double your bet every time you lose. Don’t worry, you’ll make it back, it can’t land on black ten times in a row.

  14. Commodities to Boom

    Terrible news. Currency further debased, savers punished. Didn’t the RBA just declare the recession finished?

  15. Poochie the Rockin DogMEMBER

    Some people have said that I’ve been given the gift of premonition so this is what Australia will be like. 20 years from now there will be less jobs thanks to automation/continued globalisation – more people have unstable gig jobs /part time employment but thanks to non existing responsible lending laws these people all qualify for a 2 mil dollar mortgage for a shitty 1brm apartment. Most people only pay the interest and see freedom in the fact that in 20 years the apartment will be worth 3 million. The gig jobs are unstable and increasingly involve work like maintaining the fire fighting drones which have a habit of falling out of the sky/crushing people. As people get maimed by their gig economy jobs they are unable to pay the interest for their shitty 1br apartments at which point they see no point in living and rush to the euthanasia parks (like Disney land and owned by the banks) to end it all.

  16. I asked recently about how to position for a rise in the Term Funding Facility from $200 billion to say $500 million. Seems should have rephrased it to a reduction in the interest rate to 0.1%.

  17. So…. plunging interest rates (when they are already super low) is now great news and all will be well. Yay, straya!!

    Wow, I guess it was just that easy huh?

    • What fools were all the people who lived in the previous 5000 years. None of them worked out how easy it was (although Robert Mugabe came close)

  18. Inflating asset prices from here is just going to increase social division, and reduce future employment as there is a limit at which high incomes can be paid and the country remain competitive.

  19. The other thing about this is, that for people who are buying houses today, when they are still at some of the highest prices they have ever been, will have no interest rate relief throughout the entirety of the loan. Well, that’s assuming that interest rates don’t go up first, but then that’s going to cause it’s own set of problems, isn’t it? Can’t see wage increases riding to the rescue either. But prices are just going to keep going up? All because people can get loans for 0.15% cheaper than yesterday? How much saving does that translate to per month for the average loan? Can’t be all that much.

    Every time I think this country has hit peak crazy, they keep proving me wrong.

  20. instead of “buying” 100billion worth of bonds, they should just give everyone $4000. it would have a better impact on the economy. maybe this is why they are developing the digital currency – so that they can implement such a program and ensure it is spent.