The Reserve Bank is being urged to take the Official Cash Rate below zero.

The central bank will buy back up to $30 billion of Government bonds over the next 12 months, to stimulate growth and reduce interest rates.

Former Reserve Bank economist Michael Reddell told Mike Hosking policies have been moving in the right direction but much too slowly and not aggressively enough.

He says that's true of the Reserve Bank, which should have been cutting interest rates to negative.

Reddell says it tried quantitative easing yesterday but it didn't make much difference.

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