Why are households freaked by rate cuts this time?

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Via Bloomie:

Australia’s monetary policy easing has driven interest rates down to levels where they could be doing more harm than good for the economy.

The central bank could be bumping up against the “reversal interest rate,” a level at which accommodative policy begins to produce unintended consequences. The clearest sign of that is the slide in consumer sentiment since the Reserve Bank began lowering rates in June, particularly after the ensuing July and October cuts.

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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.