Rate cut seen as boost for Hunter economy
Posted
With expectations of a further slide in the Hunter's economy over the next quarter, a local economist says the latest interest rate cut is a much needed shot in the arm.
In response to the global financial turmoil, the Reserve Bank yesterday cut official rates by 1 per cent.
The Hunter Valley Research Foundation's Robyn McDonald says information collected during the first nine months of the year reveals a gloomy outlook for the Hunter's economy.
"The indicators that we collect by surveying householders and business have deteriorated substantially," she said.
"Both business and household confidence have just fallen off a cliff. Householders on balance are pessimistic about the next three months.
"This cut in rates may in fact boost confidence."
