Skip to main content

Australia - Stealth QE doesn’t let RBA off the hook

Proposals by the banking regulator and the RBA that banks will need to hold more government bonds could be interpreted as financial repression. However, the surge in the outstanding stock of government bonds was always likely to result in higher holdings by commercial banks. And because those requirements will probably be phased in over many years, their impact on funding costs will be small. As such, we still expect the RBA to launch additional government bond purchases next year.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to gain:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services


Get access