Rate cut will be little help, says Westpac

Original article by James Eyers, James Frost
The Australian Financial Review – Page: 1 & 17 : 7-May-19

The futures market has priced in a 38 per cent chance that the Reserve Bank will reduce the cash rate on 7 May. Westpac CEO Brian Hartzer warns that a rate cut will have limited impact on economic growth and consumer spending, given that the cash rate is already at a historic low. He argues that government spending has been a key driver of economic growth, but the political debates needs to have a greater focus on measures that will drive private sector growth and investment. Shadow treasurer Chris Bowen says the fact that interest rates could potentially fall further demonstrates the "real concern" about the economy under the Coalition.

CORPORATES
RESERVE BANK OF AUSTRALIA, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIAN LABOR PARTY, JP MORGAN AUSTRALIA LIMITED, PRICEWATERHOUSECOOPERS AUSTRALIA (INTERNATIONAL) PTY LTD, CLIME ASSET MANAGEMENT PTY LTD, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

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