Post to Facebook on 11/9/2019 7:45 AM
Commenting on “Reserve Bank's efforts to power the economy aren't going to plan”
Posted to The Age (10/9/2019) on 11/9/2019
Commenting on “Reserved Banks’s efforts to power the economy aren’t going as plan”
https://whttps//www.theage.com.au/politics/federal/reserve-bank-s-efforts-to-power-the-economy-aren-t-going-to-plan-20190910-p52pps.html
One day, RBA governor will accept that lowering interest rate does not stimulate spending, and indeed as the article points out, it has not been able to do it, but instead push up property prices again.
High interest will dampen the thirst of property investors and give those who try to save up to buy their first home. Investors ask for return, but own occupiers are contented to enter the market first to have a house to call home. That also serves as a security blanket.
Thank you for reading.
Commenting on “Reserve Bank's efforts to power the economy aren't going to plan”
Posted to The Age (10/9/2019) on 11/9/2019
Commenting on “Reserved Banks’s efforts to power the economy aren’t going as plan”
https://whttps//www.theage.com.au/politics/federal/reserve-bank-s-efforts-to-power-the-economy-aren-t-going-to-plan-20190910-p52pps.html
One day, RBA governor will accept that lowering interest rate does not stimulate spending, and indeed as the article points out, it has not been able to do it, but instead push up property prices again.
High interest will dampen the thirst of property investors and give those who try to save up to buy their first home. Investors ask for return, but own occupiers are contented to enter the market first to have a house to call home. That also serves as a security blanket.
Thank you for reading.
