RBA hawkishness has put off consumers: Symond

by Adam Smith28 Oct 2011

The RBA's hawkish stance has put off consumers for much of the year, Aussie's John Symond has stated.

The Aussie Home Loans executive chair has urged the Reserve Bank to drop interest rates at its Melbourne Cup Day meeting "by at least 0.25%". Symond said the bank's rate rhetoric through much of the year had negatively impacted consumer sentiment.

"Many Australians are worried about their job security and are not spending money, while the spectre of new taxes is also hanging over them. The Reserve Bank has been consistently talking up interest rates over the last year and this has contributed to consumers’ reluctance to spend," Symond commented.

Lower-than-expected inflation figures released this week by the Australian Bureau of Statistics added weight to rate cut hopes, and Symond commented that a Melbourne Cup Day cut would be well-timed to boost consumer confidence.

"We are heading into the crucial Christmas retail season and a rate drop will boost sales and the rest of the economy. Australia is slowly recovering from the Global Financial Crisis but is susceptible to any economic shocks, which continue to be felt overseas," he remarked.

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