Australian Lefty on Politics, Governance, Science and Info Management

If RBA interest rates hit zero…

Posted by Dave Bath on 2009-02-12

So, …, in order to make it easier for people and companies to borrow money to keep the economy running, the Reserve Bank keeps on lowering interest rates.  Those rates can’t get much lower before the RBA starts paying people to borrow money.

What can the RBA do in such a situation?

The government needs to start talking to us NOW about the options it is considering when the RBA cannot lower rates any more.

Of course, if rates hit zero or close to it, what is the ratio between what banks charge and what they can get it for from the Reserve?


2 Responses to “If RBA interest rates hit zero…”

  1. Jacques Chester said

    The usual option is to languish economically for at least a decade while producing various ground-breaking Anime series.

  2. Dave Bath said

    JC: “ground-breaking Anime series”
    * giggle *
    Oh… so we have “Owyagoin Kitty, where the bl**dy hell ya been?” to look forward to…. barf

    But what are the UNusual options? The road not yet taken?

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