Rate cuts might hurt, as well as help. What if this man didn't need to do as much?
- Written by Gabriele Gratton, Associate Professor of Economics and Scientia Fellow, UNSW
There’s a very good chance that later today the Reserve Bank will cut its cash rate to 1%. Some predict more cuts by the end of the year, perhaps to 0.5%.
It’s understandable. Economic growth is under-performing; prices and wages are scarcely growing; and for three quarters now the economy has been in what might be called a per-capita...
