The RBA is now perhaps only one or two interest rate cuts away from a highly unusual and unbalanced macroeconomic policy situation of buying government bonds through "quantitative easing".
The historic cash rate cut to just 0.75 per cent takes the Reserve Bank of Australia one notable step closer to unconventional stimulus measures.
The RBA is now perhaps only one or two interest rate cuts away from potentially launching a radical program to buy financial assets such as government bonds through "quantitative easing" (QE).
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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
