Kelly says: Time to Spend and Invest

According to Westpac Banking Corporation Chief Executive Officer Gail Kelly, “Australian consumers are more likely to save than spend any extra money available to them following the central bank’s decision to cut interest rates for the first time in more than two years.” The RBA’s decision to drop the cash rate has a very big impact to the business and Australian economy. It is a first time in two and a half years to lower the debt repayments of many households. Last November 1, RBA cut the benchmark a quarter of a percent to 4.5%, illustrate slowing inflation and weaker global growth. The central bank last week lowered its forecasts for economic growth and mining-related parts of the economy are growing strongly.

Chief Executive Officer Gail Kelly stated, “Ultimately what we need for the economy to grow is for people and businesses to regain confidence and to decide now is the time to spend more and indeed to invest more.” Plenty of Australians spend time shopping, travelling and spend time shopping, travelling and spend luxurious things. Is this the time to save more rather than to spend more? If the RBA believes that we’ve got room to go to be able to provide support to the economy and central bank is able to lower interest rates. Lenders are doing their best possible position to attract new customers and dropping of home loan’s rate might be able to save dollars in interest.