A Reserve Bank rate cut next week would be unlikely to have much impact on the Australian economy, NAB chief executive Philip Chronican has reportedly said.
Key quotes
“When interest rates are at absolutely very low levels, the effect of further changes in interest rates are relatively muted.”
” People who wish to borrow aren’t going to have a material change in their risk appetite as a result and it has the opposite effect on investors and savers.”
” I don’t expect, whether there is or isn’t an interest rate change in the next little while, that it will have much effect and I don’t think the last two or three changes had much effect either.”
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