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Free money one year on: a property boom and surging shares

A surging sharemarket and a property boom that threatens to widen inequality mark one year since Australia cut interest rates to nearly zero.

A year ago, Australia set foot on new terrain, dropping interest rates to near zero as it played its part in a worldwide central bank strike to stabilise the global economy.

The move was a first for Australia. At the height of the global financial crisis more than a decade ago, Australia skirted through the 2008 mayhem largely because of its powerful links with a booming China as other countries slashed rates to fresh lows.

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Richard Henderson is a markets reporter based in our Melbourne newsroom. Connect with Richard on Twitter. Email Richard at richard.henderson@afr.com.au

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    Original URL: https://www.afr.com/policy/economy/australia-counts-the-cost-of-free-money-20211125-p59c4f