Like most economists, I’d hate to see the unemployment rate head much higher than it is now.
That said, I also agree with a small but growing number of analysts who think the official cash rate has already been cut too far, and even lower rates will probably hurt more than help meet our longer-term economic challenges. The same goes for attempting to further lower already very low longer-term interest rates through RBA purchases of government and corporate bonds.
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David Bassanese is chief economist at BetaShares Exchange Traded Funds. He writes on markets specialising in debt, derivatives and monetary policy. He worked at the federal Treasury, OECD and Macquarie Bank. Connect with David on Twitter.
