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The New Daily
The New Daily
Business
Michael Pascoe

Michael Pascoe: Is the RBA acting out of spite or just lost the plot?

Philip Lowe and the RBA appear focused on taming inflation and ignoring the consequences, Michael Pascoe writes. Photo: TND/Getty

Passing without notice in April, the Reserve Bank pulled a neat little trick, apparently making multiple billions of dollars in losses “disappear”.

I’ve heard a rumour Treasury was shocked to realise the RBA was technically insolvent, operating at a loss thanks to marking the value of its massive COVID bond purchases to market. (If the rumour is true, Treasury is even more incompetent that previously thought.)

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