Follow Me on Pinterest
This site uses cookies. By continuing to use this site you consent to our use of cookies unless you have disabled them.

eMag | Directory | TNT Travel Show 2017 | Events Search | TNT Jobs


Any pretence that Australia is going to ride out the global economic storm largely unscathed has disappeared in the past 24 hours, the Sydney Morning Herald's main editorial says on Tuesday. P

Any pretence that Australia is going to ride out the global economic storm largely unscathed has disappeared in the past 24 hours, the Sydney Morning Herald's main editorial says on Tuesday.

That is the reason, says the paper, the Reserve Bank's sharp and unexpected turn on official interest rates is both welcome and appropriate.

"A long era of fine-tuning of monetary policy to keep inflation within a low band has ended," says The Herald.

"Times have changed. The central bank's governor, Glenn Stevens, has acted with boldness but his judgement is right.

"It's also gratifying that the big four commercial banks have begun passing on most of the 1 percentage point cut to their customers."

The Herald says the cut should help stabilise our markets, taking pressure off borrowers from share owners to home buyers to state governments.

It should also end the niggling debate among politicians about who is caving in more to the bankers, and also end the unseemly barracking by some media against the Reserve Bank.

The Australian's lead editorial says the RBA has been proactive in defending our real economy from the fallout of the global financial crisis by slashing the cash rate by 100 basis points to six per cent, at least double the cut anticipated.

The paper says that former prime minister John Howard's observation that Australia, with a strong balance sheet, low inflation and low unemployment, was better placed than almost any nation in the Western World to withstand the global crisis was accurate.

"As his government did with the Asian meltdown, the Rudd government is proving responsible in its stewardship of the current crisis," says The Australian.

And in welcoming flow-on effects to working class families and small businesses from yesterday's rate cuts, Kevin Rudd sensibly emphasised the imperative of maintaining the stability of Australian banks.

The Australian Financial Review says the greatest need right now is to restore confidence in financial markets and get banks lending again.

"The RBA's bold gesture should go some way to bringing that about, especially if it is followed by rate cuts in Europe and North America," the paper says.

The Fin Review adds the tumultuous events of the past seven months - in particular the past month - have made the restoration of health credit markets and the maintenance of economic growth the priority, and relegated inflation to a secondary concern."

Under the headline "RBA scores a bullseye", the Sydney Daily Telegraph says it takes a lot to put global financial news in the shade at the moment, but the Reserve Bank yesterday managed exactly that.

"With an audacious, creative and unexpected 1 per cent cut in official rates, the bank reinvented itself as a genuine player in our current economic situation," says the paper.

The bank has driven beautifully in very have traffic. Congratulations are due."


Digital Mag

Latest News

Stay connected on social networks
Like us on Facebook
Follow TNT on Twitter