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Now we know. The Reserve Bank has spelled out what it will do when rates approach zero

  • Written by Stephen Kirchner, Program Director, Trade and Investment, United States Studies Centre, University of Sydney
Now we know. The Reserve Bank has spelled out what it will do when rates approach zeroWhen the cash rate hits 0.25% the governor will pause for breath. After that he will buy state and federal government bonds, pushing longer term interest rates down towards zero.Shutterstock

Last night, in a much anticipated speech broadcast live on the Reserve Bank’s website, Governor Phil Lowe laid out in very clear terms the circumstances...

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