Australian economists explore QE options - BBG
An article by Bloomberg news said the prospect of interest rates going below 1% has prompted Australia’s economists to start exploring what much of the developed world has already contended with: the introduction of unconventional monetary policy.
While the Reserve Bank is unlikely to embark on quantitative easing for now simply to accelerate inflation and support hiring, a consensus is forming about when it would. Should a serious shock occur -- most likely from offshore and probably China -- that drives up the jobless rate and threatens recession, the central bank will then need to look elsewhere for ammunition.
"A lower AUD and tax cuts will provide the boost the economy needs to get back onto a growth path that will push the unemployment rate lower over 2020", analysts at ANZ Bank argued.
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