Mollycoddled: Reserve Bank’s $10bn gift to banks to help with rate stress or profits?

Reserve Bank of Australia, ESAs
The Reserve Bank of Australia will pay the big banks $10 billion a year in interest for money the banks have sitting in deposit. Callum Foote and Michael West look at why the RBA has chosen to start paying interest on almost half a trillion dollars sitting in its settlement accounts.

This post was originally published on Michael West.