RBA’s John Simon says low rate a ‘poor predictor’ of crises

reserve-bank-of-australia
RBA's Simon: Low policy rates "do not show up as a reliable indicator" of financial crisis

Low interest rates are not "inherently risky or destabilising" in their own right, the head of economic research at the Reserve Bank of Australia (RBA) said in a speech today (October 8).

Low interest rates, with strong growth rates and inadequate prudential supervision, had contributed to the global financial crisis, said John Simon in a speech in Sydney. But a review of economic history showed low interest rates were the international norm in most countries before the 1970s, without leading to

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: