RBA warns that low rates don’t come without cost

As every saver (and mortgage holder) would know, interest rates have never been lower. One of the hallmarks of the government’s response to the coronavirus recession last year was unprecedented monetary policy. Interest rates were already at ‘record lows’ before the pandemic. But as the economy ground to a halt last year, the Reserve Bank of Australia (RBA) found new meaning in that phrase. As it stands today, the official cash rate is sitting at just 0.1%, which is, for all intents and purposes, zero.

According to the RBA though, this new meaning for ‘record low’ wasn’t enough. It also implemented, for the first time in Australia’s history, a new quantitative easing (QE) program. This is what some investors call…