Australia's largest stock trading and investment forum Australia's #1 stock forum

RBA $37 billion loss, page-16

First 16 Last

Share
Profile

Follow
moorookamick

22,750 Posts.

769

29/09/22

09:33

Post #: 63935969
Share

Originally posted by moorookamick: ↑

IMO, the reason that Labor is having an inquiry into the RBA
is because of this situation (loss due to bonds depreciation)
& not the Governor's wild forecasts on interest rates.

The RBA still holds over $600 Billion in Bonds, the result of QE.

IMO , the RBA should have fed these bonds back into the market
before it started to raise interest rates because the interest rate
has reduced the bonds values.(when Bonds interest rates go up,
the value of an already issued bond goes down. This is not rocket science !

IMO , its logical to sell the QE Bonds first because the purpose
of QE was to stimulate the economy & avoid deflation by
not only accommodating the Government's borrowing to avoid tax increases
but also make Banks more liquid so that they could loan like drunken
sailors on next to nothing interest rates.

Reducing the money supply by putting the Bonds back in the market
would have had a similar effect in the short term as raising interest rates
and at the same time protect the RBA from Loss and as an extra bonus,
pass on the RBA profits to Treasury.

IMO the Board & Governor will have to answer to Government why
it didn't do that.

Expand
1 Upvote

Reply

Top Stories

RMX

Red Mountain Mining: record gold prices, two projects, two greenstone belts

YAL

Yancoal makes it into the ASX200 in latest S&P rebalance

CBL

Control Bionics expands into UK and Irish markets with NeuroNode device

GDC

Global Data Centres not clear on future operations after AirTrunk sale payout

CNB

Carnaby Resources hits copper at Mohawk, QLD

There are more pages in this discussion • 16 more messages in this thread...

First 16 Last