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Lowe flags historic RBA policy shake up – The Australian Financial Review

Not only is the RBA boss flagging more extraordinary stimulus, but he is also signalling a more fundamental shift away from the inflation-targeting framework.



To be sure, the RBA has little ammunition left and this is mainly a task for government fiscal policy and structural reform.
Nevertheless, as part of a package of measures almost certain to be executed in November, the RBA will likely cut the cash rate target from 0.25 per cent to 0.10 per cent, a relatively token gesture given the cash rate was already trading in markets at 0.13 per cent before he spoke.
That would be accompanied by trimming to 0.10 per cent other “interest rates” Lowe mentio…

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