First scratch: Cheap loans for banks

Reserve Bank plans to print and lend up to $28b direct to banks at near 0% over 2 years; Success to depend on banks passing on low rates, which they haven't since August; No strings on first $18.7b

The Reserve Bank has announced plans to print and lend up to $28b to banks at 0.25% or lower over the next two years in the hope they will pass on the lower funding costs to borrowers, even though they haven’t since August. That would bring the total money printing to almost $130b over three years, with the banks facing no restrictions on whether they p…