Ex-centralbanker Says RBA Might Do 25+25, Not 50
By Sophia Rodrigues
Published On 02 Mar 2020 , 02:44 PMAn ex-centralbanker with strong experience in monetary policy during the global financial crisis says the RBA is more likely to do 25bps cut in two steps, than cut 50bps in one go. According to him, it is the signalling that matters now because there is not a lot of data on the impact of coronavirus to go by. A central bank's job is to calm markets and provide confidence boost to businesses. And the best way to do that is to lower the cash rate and provide strong commitment that they will do more if required, he says.
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