Ian Macfarlane, who headed the Reserve Bank of Australia (RBA) through the Asian Financial Crisis of the late 1990s and the Dot.Com crash of the early 2000s, believes the present situation is “most perplexing” and the central bank is placing too much faith in expectations that interest rate cuts can stimulate the economy. “Too much faith is being placed in the expectation that monetary policy can do things that it can’t do,” Mr. Macfarlane told The Weekend Australian newspaper on Saturday. “It’s done everything it can do. Once interest rates are negligible, further cuts would seem to have very little power to do anything useful.” The RBA has delivered three 25 basis point rate cuts this year and is widely expected to do more in the near future. FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next USD/JPY off lows, still depressed below 107.00 handle FX Street 3 years Ian Macfarlane, who headed the Reserve Bank of Australia (RBA) through the Asian Financial Crisis of the late 1990s and the Dot.Com crash of the early 2000s, believes the present situation is "most perplexing" and the central bank is placing too much faith in expectations that interest rate cuts can stimulate the economy. "Too much faith is being placed in the expectation that monetary policy can do things that it can't do," Mr. Macfarlane told The Weekend Australian newspaper on Saturday. "It's done everything it can do. Once interest rates are negligible, further cuts would seem to have very… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
