RBA pushing share prices up, not helping economy: experts

Experts are openly criticising the Reserve Bank of Australia’s (RBA) current strategy, saying it doesn’t actually help the economy.

In response to the COVID-19 recession, the RBA has cut interest rates to near-zero. It has also performed quantitative easing to reduce yield on government bonds, which cynics label “printing money”.

However, the latest figures this week showed Australia was recovering remarkably well, with the gross domestic product expanding 3.3% in the September quarter.

BetaShares chief economist David Bassanese said long-term ultra-low rates would pump up asset prices, such as for shares, but could harm the country.

“The RBA’s promise to keep interest rates at near-zero for a further 3 years appear…