Exiting the Easy Money Circle
The RBI adopted multiple regulatory forbearance measures and ultra-loose monetary policy to counter economic headwinds. Now it has to work out an exit roadmap
Illustration by Raj Verma
More than a decade after the global financial crisis, the exit from an ultra-loose monetary policy - such as near-zero interest rates and helicopter money - in the US is still a work in progress. The US Federal Reserve s balance sheet has expanded from under $1 trillion before 2008 to $4.5 trillion in the aftermath of the financial meltdown. The Covid outbreak has further pushed the unwinding as the Fed s balance sheet is expected to jump to 50 per cent of the country s GDP from the current 34 per cent. The eventual exit would mean liquidity tightening and higher interest rates in the US, which would have implications for emerging markets, including India, by way of dollar outflows from stock market and currency depreciation.
Australische Notenbank hält an Anleiherückkaufprogramm fest
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Volkswirtschaft - Auf diese Ökonomen hört Österreich
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AUD/USD pressured as RBA raises concerns on housing prices
AUD/USD pressured as RBA raises concerns on housing prices
The bank left interest rate unchanged and raised concerns about the housing market.
It will publish its financial stability report on Friday.
The AUD/USD price declined slightly after the latest Reserve Bank of Australia (RBA) interest rate decision. The Aussie dropped from 0.7660 to 0.7616.
AUD/USD price action
RBA interest rate decision
The Australian Central Bank concluded its two-day meeting today and did what most analysts were expecting. It left interest rates unchanged at the record low of 0.1%, where they have been in the past four months.
Австралийският ASX 200 се повиши след решението за запазване на лихвите:: Investor bg
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