Rate cut would do little to help economy: WAMBY KERRIE SYDEE | FRIDAY, 29 JUL 2016 12:16PMWith inflation at a 17 year low markets are pricing in a rate cut at next week's RBA meeting, although, according to head of investment management Australia at Western Asset Management, Anthony Kirkham, a rate cut might not be the right answer. Related News |
Editor's Choice
AIA Australia rejigs retail team, appoints new lead
AIA Australia's restructure of its retail business will see two senior leaders depart while a new chief retail insurance officer has been appointed to take charge of the next phase of growth.
JANA launches private credit trust
JANA is expanding its investment trust offering with the launch of an institutional-quality private credit solution.
FAAA welcomes 'widow's tax' changes in CGT, negative gearing reforms
FAAA says it welcomes the legislative changes aimed at addressing the so-called "widow's tax," noting the amendments will protect grieving families and individuals navigating relationship breakdowns from unintended tax consequences.
ART strikes $883m QLD Westfield deal
Australian Retirement Trust (ART) has agreed to acquire a 50% interest in Brisbane's Westfield Mt Gravatt from Scentre Group for $882.5 million, in what is expected to be Australia's largest single-asset retail transaction this year.
Videos
Brought to you by ![]()
Further Reading
Products
Expert Feed
When geopolitics becomes a portfolio risk
Geopolitics is back - again - and Australian investors can no longer treat it as distant background noise.
Does association membership still matter?
With all the changes the advice sector has experienced in recent years, such as regulatory reform and increased education and professional standards ...
Digital assets and where they stand in 2026
So far in 2026 digital assets have captured the headlines largely for the wrong reasons, but that doesn't tell the full story.
Rethinking default design in a changing market environment
The evolution underway in the US DC system highlights the value of periodically reassessing default design assumptions.
Featured Profile
Andrew Gregory
CHIEF ADVICE OFFICER
UNISUPER
UNISUPER
After 25 years, Andrew Gregory remains motivated by the impact financial advice can have on Australians' lives. As UniSuper's chief advice officer, he is not slowing down on any of his current ambitions. Matthew Wai writes.
The Financial Standard podcast Tune in each week as we discuss the latest developments in Australia's wealth management industry. |  |
Exactly right Anthony. Demographics are the key. The baby boomers have always made a difference and are now the ones with the savings. When the baby boomers had to borrow to consume, lowering interest rates was clearly stimulatory. Now that the baby boomers have to draw on their savings or superannuation accounts to consume, lowering interest rates actually decreases their capacity and willingness to consume. Holding rates steady or, perhaps, increasing them modestly, may be more productive than further cuts.
Perhaps we need to consider those retired baby-boomers criticised for accumulating significant super balances and other savings, who are too wary to spend it because they don't want to erode their principle.
How about actually INCREASING interest rates so that these self-funded retirees can have a decent income without having to resort to claiming the age pension from the public purse?