RBA Governor Philip Lowe stated that negative rates could prevent them from lending. But at the same time, he commented on the package and said it is working and in case there is a need then RBA would buy more government bond.
According to Senator Peter Whish-Wilson, the central bank purchase of government bond might have impact on the big commercial banks.
Philip Lowe clarified the statement by Whish-Wilson saying that RBA is buying bonds from pension funds and other investor and that it might continue buying in the secondary market and avoid monetization and direct government financing.
There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.
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