Australian interest ratesFeatured Article

How to stimulate while lifting interest rates

David Llewellyn-Smith
Wednesday, 5 June 2019
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There seems to be some confusion in the MB readership about our position regarding rate cuts. Let me clear this up:

  • we support the cash rate being cut to zero;
  • along with tougher macroprudential measures to prevent any rebound in mortgages;
  • this would crash the AUD and force a restructure onto the Australian economy away from household debt and consumption, towards tradables.

There, how hard is that. We’ve had this position since 2011.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.