The Reserve Bank of Australia talking about what to do when interest rates are approaching zero and it needs to stimulate the economy seems naff given the cash rate’s general direction. Until you consider two things.Historically, advanced economies cut rates by about 400 basis points during recessions. And the cash rate is at only 4.35 per cent.Subscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? Fetching latest articles
Near-zero interest rates are closer than you think
The borrowing rates of the pandemic era may feel like ancient history but the Reserve Bank is already running fire drills for the next economic crash.
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