Cut Rates And Spend To Save Economy

Franchising:

Australia’s major banks should pass on all of the Reserve Bank of Australia’s reduction to the official cash rate believes the Franchise Council of Australia. FCA executive director Steve Wright said reductions in mortgage rates had been much greater than those applying to business lending.
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“If banks want to drive investment and increase their turnover, they need to reduce business lending rates,” Wright said. “It will be small business which has the ability to kick start reinvestment if there is a significant downturn this year. The quicker we get business lending rates down, the quicker the recovery can get started.”

However the Australian Retailers Association’s executive director Richard Evans said it’s up to single workers and working families to inject funds back into the economy and save their jobs.

“Around 8.8 million Australian families and singles are expected to receive payments of up to $950 from March this year as part of the Household Stimulus Package but to save jobs this money needs to flow through the economy,” said Evans.

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