The RBA minutes also noted that "members also...>

RBA: The RBA minutes also noted that "members also reviewed the international

experience with other monetary policies & their relevance in the Australian

context, as they had done the prev. year. These policies included -ve interest

rates, FX intervention, the purchase of private sector assets & also direct

gov't financing. Members agreed that the considerations around these options,

which had been covered in a speech by the Governor in Nov '19, remained relevant

in current circumstances. All such options entail significant costs & involve

very difficult trade-offs and, for some policies, there are legitimate questions

about their effectiveness. Members agreed that -ve interest rates in Australia

remain extraordinarily unlikely. They also agreed there is no case for

intervention in the FX market, given its limited effectiveness when the exchange

rate is broadly aligned with its fundamental determinants, as at present.

Members reaffirmed the importance of the longstanding principle of separating

monetary policy from the financing of government, a principle that has served

Australia well in practice. Members saw merit in these policy matters being

addressed in an upcoming speech by the Governor on 21 July."