With 30% ($16 trillion) of central bank interest rates now below zero, what can we expect as we look ahead to 2021?
One of the curious aspects of the policy responses to the coronavirus pandemic is that the Reserve Bank’s move into unconventional monetary policy territory has provoked so little discussion.
Its deployment of "yield curve control" is, however, generating increasing interest offshore.
The US Federal Reserve Board is paying close attention to the RBA’s capping of bond rates out to three-year maturities as it considers whether to add such a move to the raft of unconventional measures it has already implemented in the US. Continue reading here.