Business
RBA defies falling interest rates to boost earnings – Sydney Morning Herald
Interest rates hit record lows, the Australian dollar slid and the economy was in recession but the Reserve Bank posted a $2.5 billion profit.
As market interest rates tumbled, the bank said it had actually earned more from the interest on the Australian government bonds it had bought to help the country through the coronavirus recession. By the end of the financial year, the bank had bought more than $50 billion in government debt.
The RBA also made valuation gains because of the fall in the value of the Australian dollar, which started the year at US 70 cents before dropping to US 57 cents in mid-March.
The bank, which is expected …
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