Reserve Bank’s bond program helped save jobs and economy

The Reserve Bank’s purchase of almost $300 billion in federal and state government debt through the COVID-19 pandemic kept more people in work, increased the economy by at least $25 billion and helped finance billions in extra infrastructure projects, a review of the program has found.

The Reserve Bank review of the BPP, released on Wednesday, found it reduced the interest rate on federal debt by about 0.3 percentage points and narrowed the gap between federal and state government debt interest rates.It found not only did it push down the cost of government debt, it lowered the cost of other interest rates across the economy and also suppressed the value of the Australian dollar.

The review found not only did the BPP help the economy directly, it gave federal and state governments the financial space to increase their spending through the pandemic. The cost of their debt issued under the program was about $7 billion than had the BPP not been in operation.and were associated with a substantial increase in infrastructure spending by the state and territory governments,” it found.

swrighteconomy It’s not what they did during the pandemic that bothers me. It’s what they did in the decade preceding it. Central banks have been so reckless in their easing since the GFC, they created a debt fueled monster and by the time covid came, they were up sh** creek.

swrighteconomy Well there's the secret 240 billion to fund politicians & high incomes tax cuts of $12,000 plus year after year. But AlboMP What trillion dollar debt. What endless budget deficits. What cost of living crisis. What essential services starved of funding from 9 years of LNP Govt.

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