Australia Joins the Rate-Cutting Party

Australia's move to slash interest rates as the risk of deflation deepens demonstrates how our chaotic times are rewriting the laws of central banking.

Glenn Stevens is the life of the party.

Photographer: Jeremy Piper/Bloomberg

The Reserve Bank of Australia, that Asia-Pacific bastion of hard-money policies, has just joined a dozen other monetary powers in slashing rates as the risk of deflation deepens. The move by Governor Glenn Stevens surprised many and demonstrates how our chaotic times are rewriting the laws of central banking.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.