[6] My fifth, and final, point is that the threshold for undertaking QE in Australia has not been reached, and I don't expect it to be reached in the near future. In my view, there is not a smooth continuum running from interest rate reductions to quantitative easing.
It is a bigger step to engage in money-financed asset purchases by the central bank than it is to cut interest rates. There are, however, circumstances where QE could help. The international experience is that in stressed market conditions, the central bank can help stabilise the situation by buying government securities.