Economist Nicholas Gruen says RBA is setting up for stagnation
The Reserve Bank cut interest rates during the budget lock up, due to concerns that the last quarterly inflation figures showed deflation. Lateral Economic’s Dr Nicholas Gruen, was pleased they did finally move on interest rates, but has criticised their long term vision. He says instead of sitting around hoping for low interest rates to work, they should have been aggressively moving towards zero a long time ago.
Story features: Dr Nicholas Gruen, CEO of Lateral Economics
Image: ‘Economics and Wellbeing: Beyond GDP’, by Newtown Grafitti on Flcikr