The Reserve Bank of Australia will not pay dividends to the government before the end of the decade, revealing its bond buying program that propped up the economy through the pandemic could ultimately cost up to $58 billion, as it nurses a $44 billion paper loss on its fixed-income holdings.
The central bank, which began its $300 billion bond buying program in November 2020, released its internal findings into the effectiveness of the policy, often referred to as quantitative easing (QE).
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Jonathan Shapiro writes about banking and finance, specialising in hedge funds, corporate debt, private equity and investment banking. He is based in Sydney. Connect with Jonathan on Twitter. Email Jonathan at jonathan.shapiro@afr.com
John Kehoe is economics editor at Parliament House, Canberra. He writes on economics, politics and business. John was Washington correspondent covering Donald Trump’s first election. He joined the Financial Review in 2008 from Treasury. Connect with John on Twitter. Email John at jkehoe@afr.com
