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Can Australia stop interest rates from approaching zero? Only with a big shift in policy

  • Written by Reuben Finighan, Senior Research Officer at The Melbourne Institute and Fellow of the ARC Life Course Centre of Excellence, University of Melbourne

Australian Treasurer Scott Morrison recently suggested the Reserve Bank of Australia (RBA) avoid cutting interest rates below the current 1.5%. The Turnbull government’s “fiscal consolidation”, he said, was more important for stimulating the economy.

This is big talk, and to be anything close to credible it needs to be backed up...

Read more: Can Australia stop interest rates from approaching zero? Only with a big shift in policy

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