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Why zero interest rates are here to stay

  • Written by John Quiggin, Professor, School of Economics, The University of Queensland
Why zero interest rates are here to stayksb/Shutterstock

It’d be wrong to interpret last week’s Reserve Bank decision to cut its cash rate to 0.10% as an emergency response to the COVID crisis.

The implication would be that once the pandemic is controlled the economy will return to something like the pre-crisis “normal” and the ultra-low interest rates will end.

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