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‘Gradual and uneven’: Australia is not going to recover from the recession quickly, RBA says – Sydney Morning Herald

RBA deputy governor Guy Debelle has indicated the bank may buy even more government debt to lower interest rates as the economy faces an uneven recovery.

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Dr Debelle said the bank was ready to buy more government debt and was looking at buying bonds that would mature beyond 2023 in a bid to drive down longer-term borrowing costs.
Apart from taking rates down, such a move would also encourage investors to buy assets that may be based overseas, which in turn would help bring down the value of the Australian dollar.
Dr Debelle said direct intervention in the foreign currency market was also an option given it could boost the economy.
“A lower exch…

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