What will be the economic fallout of cutting JobKeeper and JobSeeker?
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A decision is looming for the Federal Government about whether it can cut the rate of the dole back to just $40 a day, which is below the poverty line, after doubling it last year at the beginning of the COVID crisis.
It is due to go back to the old rate at the end of next month, at the same time as the JobKeeper wage subsidy ends. Chief political correspondent, Laura Tingle looks at the impact will this have on the broader economy.
We are hearing an unusual amount from the Reserve Bank this week.
On Tuesday, after its first board meeting for the year, the bank outlined plans to spend another A$100 billion it didn’t have (“created money”), to buy government bonds in order to keep interest rates down – so-called quantitative easing.
On Wednesday Governor Philip Lowe said he expected to keep the closely-watched inter-bank cash rate at its present all-time low of 0.10% for at least another three years.
And on Friday Lowe will give evidence to the parliament’s economics committee in Canberra while in Sydney bank staff release updated forecasts.
Laura Tingle reports on today’s economic news from the Reserve Bank Governor
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LEIGH SALES: Obviously the success of Australia s vaccine rollout is going to play an important role in the speed of the economic recovery.
The Reserve Bank Governor, Philip Lowe, gave a major speech today. Chief political correspondent Tingle is with us again.
Laura, Philip Lowe was pretty optimistic?
LAURA TINGLE, CHIEF POLITICAL CORRESPONDENT: He was very optimistic, I thought, Leigh. He did base it all on the vaccine rollout going ahead as planned, but he is really talking about the economy getting back into really good shape pretty quickly.
Allan Baxter
Deputy Reserve Bank Governor says it is fortunate that inflation has remained under control.
SA could achieve 2019 GDP levels by 2023, according to the Reserve Bank.
South Africa is fortunate that it did not have an inflationary problem as it entered into the Covid-19 crisis, and one of the good stories to come out of the pandemic is that inflation remained under control, said deputy Reserve Bank governor Rashad Cassim.
Cassim was speaking during a panel discussion hosted by Allan Gray on the state of the economy.
Sharing views on inflation – which according to the December print of 3.1% is the lowest level in 16 years – Cassim said there could be various reasons for the decline, including the credibility of monetary policy and the even declining global import prices.
Hobson Pledge s Don Brash to speak against Tauranga Māori wards
26 Jan, 2021 06:29 PM
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Hobson s Pledge spokesman Don Brash will speak at a public meeting in Tauranga on Friday, despite resistance from some parts of the community. Photo / File
A Tauranga meeting with Hobson s Pledge spokesman Don Brash as one of the headline speakers has been organised in a bid to gather more signatures for a petition against Māori wards. However, the meeting on Friday could face opposition from protesters as resistance to the petition swells.
The public meeting is expected to be held at the Tauranga Yacht and Power Boat Club and will discuss the issue of Māori wards. Brash, Hobson s Pledge spokeswoman Casey Costello and former New Conservative member Elliot Ikilei will be speaking.