According to the Australian Financial Review, as the RBA (Australian central bank) stepped closer to the interest rate cut, the attention of the financial market turned to the possibility of adopting unconventional stimulus measures (QE, ie quantitative easing). There is no doubt that the RBA will not be able to do this easily unless the economy is in trouble. In fact, quantitative easing is not unprecedented in Australia, and RBA implemented such measures during the 2008 global financial tsunami.
Today, RBA’s funds have increased by 50% to A$150 billion in response to the crisis, while the Australian financial industry can provide cheap funds to commercial banks to help credit flow to the economy.
Deputy Dean of the RBA, Guy Debelle, said in December that he would not rule out the quantitative easing experiment again, and pointed out in a speech that he had studied the experience of other central banks such as the Federal Reserve.
Debelle said: “We don’t want to put it into practice. But if needed, quantitative easing is also one of Australia’s policy options. Australia has fewer government bonds, which may make quantitative easing more effective. If necessary, the RBA’s funds It can also be expanded to help reduce the upward pressure on financing costs, as it did in 2008.” During the 2008 global financial crisis, RBA injected liquidity into banks, and banks used RBA’s funding lines to provide loans to families and businesses. .
