Reserve Bank of Australia governor Philip Lowe surprised some economists last week when he went ahead with the plan to wind back some of the stimulus the bank has been pumping into the economy. At the the monthly meeting, the board confirmed it will now be buying bonds to keep market interest rates and borrowing costs low at a rate of $4 billion a week rather than $5 billion. Some economists had expected the board to delay that decision in the face of an expected sharp economic contraction in the September quarter as a result of COVID-19 restrictions, which have more than half the population in lockdown. But in a ... (full story)