With interest rates cut to a record low 0.75 per cent by the RBA last week, Australia joined other major economies in slashing rates to near zero.
Reserve bankers around the world regard lower rates as an economic stimulus. The cut came as the latest economic data shows the Australian economy is slowing down.Reserve Bank of Australia Governor Philip Lowe has argued lower interest rates can help the economy. . "What would happen then is a lot of imported goods would become cheaper. Cars, electronic goods and petrol would become cheaper," he said.
Economists say the cost of petrol is an important factor in consumer spending. Lower prices at the bowser could help raise household spending and stimulate the economy. Greenwood says while a higher dollar may not be welcome by Australian exporters, it would help stimulate consumer spending, which – despite tax cuts – has slumped.
Ross_Greenwood Well the banks are not likely to pass on any more interestrates cuts anyway! 9News There are other ways to stimulate the economy.
Ross_Greenwood But but but ... think of my propped up housing bubble and easy money
Ross_Greenwood great idea
Ross_Greenwood Wage stagnation and extreme lifts in utilities over the past decade has lead us to this farce. Interest rate cuts are only helping property investors, as shown by the bounce back in Sydney house prices. This is a direct result of Liberal policy on slow wage growth
Ross_Greenwood No! That's bad analysis! Household income going down, salary is not moving, debt rising, consumer confidence is down too..no disposable income with family. RBA doing good till now. Gov is not doing enough!
Ross_Greenwood People are struggling that’s why their not spending,bills are high expenses are high.
Loans Loans Latest News, Loans Loans Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: smh - 🏆 6. / 80 Read more »