Record-low rates doing little to boost Aussie economy

Interest rate cut 3 times since June, but this has not fuelled consumer, business spending

A sold sign displayed on a property in Sydney earlier this week. Australia's central bank on Tuesday lowered the cost of borrowing, slashing interest rates to 0.75 per cent amid fears about the flagging domestic economy.
A sold sign displayed on a property in Sydney earlier this week. Australia's central bank on Tuesday lowered the cost of borrowing, slashing interest rates to 0.75 per cent amid fears about the flagging domestic economy. PHOTO: AGENCE FRANCE-PRESSE
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Australian interest rates have dropped to record lows, but there are growing questions about whether such cuts - which have long been used to stimulate a lagging economy - are having any effect.

On Tuesday, Australia's central bank, the Reserve Bank of Australia, cut rates to 0.75 per cent, leaving them perilously close to negative territory. The bank is expected to make a further cut of 25 basis points before the end of this year.

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A version of this article appeared in the print edition of The Straits Times on October 05, 2019, with the headline Record-low rates doing little to boost Aussie economy. Subscribe