Negative rates 'extraordinarily unlikely' in Australia: RBA

[SYDNEY] Negative interest rates are "extraordinarily unlikely" in Australia as they come with a cost to the financial system, the country's central bank Governor Philip Lowe said on Thursday.

The remarks come as the Reserve Bank of New Zealand (RBNZ) has said it asked banks to prepare for negative rates by year-end.

The Reserve Bank of Australia (RBA) has lowered its cash rate to a record low of 0.25 per cent and in March launched an unlimited quantitative easing programme to cushion the hit to the economy from the Covid-19 pandemic.

REUTERS

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