Negative interest rates?

Discussion in 'Markets & Economies' started by stackmans, Mar 19, 2020.

  1. stackmans

    stackmans Member

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    What are the chances the RBA will go negative?

    They have said consistently that they would never go negative however they also said just 34 days ago that the would never use QE in Australia and now what?

    I'm not interested in discussing the pros and cons of negative rates just the likelihood that it will happen in Australia.


    My 2c is that its likely. Thoughts?
     
  2. JulieW

    JulieW Well-Known Member Silver Stacker

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    They'll not go negative. It's a theoretical position and the RBA is way too conservative to experiment.
     
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  3. Ag bullet

    Ag bullet Well-Known Member

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    well the RBA just cut the cash rate to .25% so it's getting closer to negative rates.
     
  4. leo25

    leo25 Well-Known Member Silver Stacker

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    Where did they say they will never do QE? I've listened to many talks (some 5 months old) where Philip Lowe openly talks about doing QE.

    Also technically there is no need to go negative. It's arbitrary if they do or don't. My guess is they won't, as it's easier and more effective to just do QE.
     
    Last edited: Mar 19, 2020
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  5. leo25

    leo25 Well-Known Member Silver Stacker

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  6. Silver260

    Silver260 Well-Known Member Silver Stacker

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    This, plus the next step will be Fiscal. Central Banks have been saying for time that Fiscal policy/stimulus will be required during the next downturn.
     
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  7. aelmsu

    aelmsu Member

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    I have read that the RBA has said the lowest it will take interest rates is 0.25%.
     
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  8. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    Banks raising savings rates. So much for going into negative territory.
     
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