NOVEMBER 2009

Economic Update

Professor Neville Norman, Melbourne University

As predicted in October 2008, interest rate cuts and stimulus packages have done their job, Australia has avoided a recession and now interest rates are on the rise again. All those economists who were predicting a prolonged slump have now changed their tune and agree that rate rises are inevitable and justified. It's a matter now of how many rate increases, and when. Business should be looking at the positive conditions that have led to the rises, not the potentially negative effects of them.