Capex triggers renewed talk of rate cuts

Find below Westpac’s and ANZ’s takes on today’s capex report. Both fall in behind my assessment of the release earlier today and both are calling for a December rate cut. The same is apparent at the AFR.

As I said earlier, the report was one for the doves.

Quick Reaction – CAPEX Q3.pdf



  1. They more they cut rates, the less I spend and definitely the less I spend on goods made in Australia. Everything under the three this year is going to be ordered from the USA. Starve the beast.

    What else do they expect after they have inflated away so much of my savings?

  2. c’mon own up. You read Terry Mcrann like the rest of us . That game was up when (? can’t quite remember) who spat the dummy about certain selected journos getting the inside word

  3. I’m not sure why interest rates would be the prime consideration for capex when they are at or below economically efficient levels. If interest rates get to drive our economies, there isn’t much of substance left to support them. Interest rate cuts have done about all they can do. Any continued or further reduction will just remove the last vestige of spending, as kodiak notes above.