RBA's Edey: Further monetary stimulus may do more harm than good - AFR

According to RBA's former Assistant Governor (Financial System) Malcolm Edey, further monetary stimulus may do more harm than good, the AFR (Australian Financial Review) reports in an exclusive interview.

Key Quotes

"I think the efforts to squeeze more stimulus out of things like negative interest rates and bond-buying activities are not achieving very much. And some of it is probably counter-productive. These measures have gone about as far as they can go."

"The most likely scenario is a continued gradual recovery, and a gradual return to normal. But there are some risks around that scenario for policymakers around the world. If it turns out there's not enough growth, policymakers will face some difficult questions about what more can be done, given that you can't cut interest rates any further."

"We haven't yet fully recovered from the GFC. We haven't had enough growth worldwide to give policymakers the confidence to lift interest rates that are still at rock-bottom levels. So in that sense the shadow of the GFC is still hanging over us."