Monetary policy can help buffer Covid-19 impact – RBA’s Debelle
Deputy governor says rate cuts will boost spending despite lag and reduce exchange rate volatility
Monetary policy can play an important role in buffering the economic effects of the coronavirus, the deputy governor of the Reserve Bank of Australia said.
Guy Debelle said monetary policy can be used to ensure demand is stronger than it otherwise would be.
“Lower interest rates will provide more disposable income to the household sector and those businesses with debt,” he said on March 11. He acknowledged the public was unlikely to spend immediately in response to rate cuts, but monetary
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