Why Australia is considering quantitative easing

Treasurer Josh Frydenberg.

Treasurer Josh Frydenberg. Source: AAP

If quantitative easing happened in Australia, the country would be somewhat of a test case. Here's what it would mean and how it works.


The Reserve Bank of Australia has cut the official interest rate three times this year, from 1.5 per cent to 0.75 per cent after two years of no moves.

As a result, mortgage rates are now the lowest on record, which is good if you’re borrowing money, but if you’re a saver the interest being earned on your deposits is close to zero.


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