RBA may buy RMBS if dysfunction in mortgage market

By Sophia Rodrigues

Published On 27 Nov 2019 , 09:58 AM

Regarding purchase of Residential Mortgage-Backed Securitie (RMBS), RBA Governor Philip Lowe said last night that it is not on the list of options at the moment but might be if there was dysfunction in the mortgage market, and the RBA believed it could overcome that dysfunction by buying RMBS. Currently the mortgage market is working well, and hence the RBA believes buying government securities is a much better option, and a much more effective tool.

"If we did see dysfunction in mortgage market, and we thought we could overcome the dysfunction by buying RMBS, that would be on our agenda," Lowe said.

 

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