Thanks for logging in.

You can now click/tap WATCH to start the live stream.

Thanks for logging in.

You can now click/tap LISTEN to start the live stream.

Thanks for logging in.

You can now click/tap LATEST NEWS to start the live stream.

LISTEN
Watch
on air now

Create a 2GB account today!

You can now log in once to listen live, watch live, join competitions, enjoy exclusive 2GB content and other benefits.


Joining is free and easy.

You will soon need to register to keep streaming 2GB online. Register an account or skip for now to do it later.

Advertisement
Advertisement
Advertisement

Economist says fiscal policy answer if RBA cuts fail to stimulate economy

Article image for Economist says fiscal policy answer if RBA cuts fail to stimulate economy

HSBC Australia’s Chief Economist says if government tax cuts and interest rate cuts fail to stimulate the economy the government should turn to fiscal policy.

In a meeting with the Treasurer today, Reserve Bank Governor Philip Lowe endorsed the government’s economic plan, agreeing the economy is growing and the fundamentals “are strong’’.

HSBC Australia Chief Economist Paul Bloxham tells Ross Greenwood the RBA can’t keep cutting interest rates if the economy falters.

“Another two cuts and we’re sort of done on the RBA’s conventional instrument.

“I think fiscal policy should play a much bigger role, it makes a lot more sense in a world of extremely low-interest rates.

“The fiscal authorities have a lot of room to move, a lot more room than you think because interest rates are so phenomenally low.”

Click PLAY to hear the full interview

Deborah Knight
Advertisement