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RBA will be better prepared to respond to next crisis - - Would consider responding more decisively to disinflation - - Negative rates could in principle provide extra stimulus - - Negative rates over time can impair market functioning - - RBA may consider using tools earlier, front-load support - - QE effect in Austra
RBA may consider using tools earlier, front-load support - - Would consider responding more decisively to disinflation - - QE effect in Australia probably weaker than elsewhere - - Forward guidance with commitment difficult to implement - - Best for guidance to be explicitly set to economic outcomes - - Negative rates
Negative Rates Could Impair Market Functioning Over Time Best For Forward Guidance To Be Explicitly Tied To Economic Outcomes