Free Republic

The Reserve Bank’s role in shoring up Australia’s economy during the Covid pandemic has seen it post an accounting loss for the 2021-22 year of almost $37bn, leaving it with negative equity, the bank’s deputy governor, Michele Bullock, has revealed. At a speech in Sydney on Wednesday, Bullock said accounting methods used by the central bank had to adjust for the reduced value of billions of dollars of government debt the RBA had bought to support economic activity during the lockdowns. For the 2021-22 year, that left valuation losses of $44.9bn which, after deducting for $8.2bn in underlying earnings, left...