McEwan, Harvey say business is great

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Harvey Norman chairman Gerry Harvey and other bosses - including Breville Group boss Jim Clayton and Best & Less Group CEO Rodney Orrock - echo the NAB chief’s confidence in the face of rising inflation and interest rates.

National Australia Bank chief executive Ross McEwan says Australian businesses are cashed up and confident enough to keep investing at the fastest pace seen since the global financial crisis, even as the Reserve Bank embarks on a credit tightening cycle., Mr McEwan said NAB’s business lending grew almost twice as fast as the market and hit a record level in the month of March, spurred on by rising confidence despite inflationary pressures.

“The biggest issue for SMEs is not around the cost of the debt, their biggest issue is, ‘can I find people to work in my business?’ I’m amazed how robust the SME business sector has been and why we haven’t seen more difficulty when some of them have been semi-closed or whatever throughout COVID,” Mr McEwan said.

Mr Harvey said the sharp increase in inflation paled in comparison with previous economic periods such as the late 1980s, when interest rates increased towards 20 per cent in an effort to bring prices under control, causing a deep recession in the early 1990s. “Country towns are now going through the greatest boom they’ve gone through in history. Because you’ve got livestock prices with cattle and sheep or whatever all through the roof,” he said.Although Mr Harvey acknowledged the cost of living was rising, including for everyday items such as groceries, he pointed out that wages were also increasing and claimed “the great majority of people will be in very good shape”.

 

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Why wouldn't they be with all that JobKeeper tax payers money? I would be very optimistic if I had a few free millions saved. Corporate welfare at its best.

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