Reserve Bank governor Philip Lowe has effectively ruled out the possibility of cutting its official interest rates below zero and urged business to take advantage of the already historically low borrowing costs.RBA governor Philip Lowe says negative interest rates were having a"pernicious" effect on the financial system and pensions in Europe
Dr Lowe pointed out the Swiss government bond yields were below zero across the board and were largely negative in Germany, the Netherlands, France and Japan. "At low interest rates, many investments that didn't make sense at higher interest rates should now make sense," he said.
Nah! We will wait for few more years till rate goes negative; meaning you pay us interest for borrowing your money😃
RBAInfo This sounds very similar to a speech given by JoshFrydenberg to businesses urging them invest more money in R&D rather than distributing profits to shareholders. That did not go down well. Particularly since the Coalition itself had cut tax JS
Yep, Australia PLEASE go further into debt BECAUSE it will help other Australian debtors make repayments to banks, the greed based industry NEEDS ever growing debt to have 'growth' forever, and to pay the obscene pays of CEOs!! Senior employees 'worth' $Millions a year?!
He may want to talk to the banks. They have a new business model - virtue signalling & social 'issues' - not lending money.
BONEHEAD! Js :D
This is how the housing crisis the US started and now we gonna see the same thing here in Australia but with businesses. Get businesses to invest money In areas which they may not see a return or by getting businesses to take risky and dangerous risks that could bankrupt them
Hahahahaha they won't lend money
No thanks.
Debt society.. no surprises here
We are too scared to spend our money because the government is spending it for us. And as a receiver of an indexed pensioner, i am putting my money under the bed in preparation of the Indue card. Well played LNP
Stop borrowing it longer have any economic benefit SINCE THE WORLD HAS BORROWED MORE MONEY THAN IT HAS=GFC? Crook Economists FinancialReview FinancialTimes aus_business BCAcomau
A mate has been trying to borrow to grow his business, keeps being knocked back as he doesn't have 'security'. Sold his house and rents, poured the proceeds into starting business, now can't borrow 'coz no house to mortgage.
Must have a good reason to borrow.
now say the same thing to our government.
lol 'PLEASE! BORROW MONEY!!' That's a red flag, jeez.
The RBA and banks sucked all the money out of the economy when everyone was leveraged up on debt, everyone still has debt but they blew everyone's reserves servicing at rates to high