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Paul Bloxham

The RBA's long-term worry is stability

Loan repayment holidays have removed the immediate pressure. But what if borrowers are still in poor shape in six months?

The current economic downturn is like nothing Australia has seen in the post-war period. It calls for policy responses that are unprecedented.

An enormous ‘whole of government’ effort has already been announced, with the main focus being fiscal spending aimed at keeping workers employed. As the government and the Reserve Bank of Australia have described, the aim is to "build a bridge" for the economy from the pre-COVID-19 to the post-COVID-19 world.

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Paul Bloxham is HSBC’s chief economist for Australia, New Zealand and global commodities.

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    Original URL: https://www.afr.com/policy/economy/the-reserve-bank-s-long-term-worry-will-now-be-financial-stability-20200406-p54hij