The Deputy Governor of the Reserve Bank of Australia (RBA, for its acronym in English), Guy Debelle, made a statement on Tuesday, affirming the lack of conviction in negative interest rate policy as a tool to boost inflation and employment.
The central bank recently cut rates to a record low of 0.10% and has been buying bonds since the second quarter to contain the economic fallout from the coronavirus outbreak.
Debelle said that the Australian dollar has seen a notable depreciation since markets priced quantitative easing (purchase of bonds). However, the AUD / USD pair is currently trading at 0.7314, which represents more than 4% gains for the year.
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I don’t see much risk of inflation going too high in the next three years.
There is a lot of uncertainty in the economy.
There is a long way to go back to pre-pandemic levels
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