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Vital Signs: We are on the way back, but there are risks at every turn

By Richard Holden, Professor of Economics, UNSW

We are hearing an unusual amount from the Reserve Bank this week.

On Tuesday, after its first board meeting for the year, the bank outlined plans to spend another A$100 billion it didn’t have (“created money”), to buy government bonds in order to keep interest rates down – so-called quantitative easing.

On Wednesday Governor Philip Lowe said he expected to keep the closely-watched inter-bank cash rate at its present all-time low of 0.10% for at…

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