The Reserve Bank may yet go negative

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Few people expected the Reserve Bank to adjust its cash rate at its first meeting of the year today, and for good reason.
It has been saying loudly that it is “not expecting to increase the cash rate for at least three years”. Today it said the commitment extends to 2024.
But it isn’t a commitment not to cut the cash rate.
A further cut in the cash rate to take it below its present all-time low of 0.10% would turn the cash rate negative.
Original languageEnglish
Number of pages4
Specialist publicationThe Conversation
PublisherThe Conversation Paperpress
Publication statusPublished - 2 Feb 2021


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