Tomorrow’s interest rate decision by the Reserve Bank is the weightiest in a generation, and not only because it would be the first hike in a decade and Australians are burdened with debt.
The Reserve Bank is also technically insolvent – quite broke, in fact.
Thanks to its pandemic rescue efforts, known as quantitative easing, the RBA owns $560 billion worth of government bonds, federal and state, and they have lost close to $50 billion in value this year.That’s more than three times the RBA’s puny capital of $15.5 billion.
