Unconventional Monetary Policy Tools and Impact

In this episode, we explore the evolving role of central banks when traditional tools no longer suffice. While conventional monetary policy typically relies on adjusting interest rates to steer economic activity, crises like the Global Financial Crisis and the COVID-19 pandemic forced central banks to think outside the box. Join us as we unpack key unconventional monetary policy tools—such as forward guidance and large-scale asset purchases—and examine how they’ve been deployed globally. We also take a closer look at the Reserve Bank of Australia’s unique response during the COVID-19 pandemic, providing insights into the tools it used to stabilize the economy and financial markets when interest rates hit the lower bound.

Source: https://www.rba.gov.au/education/resources/explainers/