In Wake Of Brexit, Turnbull Says No Cause For Alarm; Stresses Need For Strong Majority Government

Prime Minister Malcolm Turnbull says there is no cause for Australian to be alarmed by the UK’s vote to leave the European Union.

Speaking shortly after the result became clear today, Turnbull said: “I remind Australians that given that we are living in a world of great opportunities but also great challenges and uncertainties, now more than ever Australia needs a stable majority Coalition Government with a strong economic plan that sets Australia up for a prosperous future.”

The decision to leave the European Union is already causing global financial markets to wobble. The development may be a crucial moment in Australia’s federal election that causes voters to stick with the government.

Transcript of remarks by Prime Minister Malcolm Turnbull on the UK vote to leave the European Union.

TURNBULL: This is a momentous and historic decision and we respect the wishes of the British people, expressed through this referendum. I want to say that Australians, I recognise, will be concerned by the uncertainty and instability in global markets, falls in currencies, including the Australian dollar and in equity markets. [Read more…]

New Liberal Ad: Stick With The Current Mob For A While

The Liberal Party has released a new advertisement on the economy.

Titled Labor’s war on the economy will cost jobs, the ad features an overall-clad workman ruminating on the ALP’s “war” on the economy.

He concludes: “So I reckon we should just see it through and stick with the current mob for a while.”

The ad comes as the election campaign enters its final two weeks. [Read more…]

ALP Ad: Labor’s Positive Plan For The Economy

With the official ALP campaign launch about to take place, the party has released an advertisement on the economy.

The stage for the ALP’s campaign launch at Penrith. Picture credit: image posted on Twitter by @AustralianLabor

The ad features Opposition Leader Bill Shorten and it titled: Labor’s Positive Plan for the Economy. [Read more…]

Growing Together: ALP Releases Policy Agenda For Tackling Inequality

The ALP has released a policy agenda for tackling inequality.

MacklinThe document, Growing Together, was launched by the Shadow Minister for Families and Payments, Jenny Macklin.

Macklin said inequality is at a 75-year high and 2.5 million Australians live below the poverty line, whilst hundreds of thousands are unemployed.

The Growing Together statement puts forward seven key pillars for tackling inequality: jobs, early childhood, life-long education, work-life balance, longevity, communities and modernising policy development and governance.

It argues that “the current social policy framework was built for, and belongs to, a different era”. The statement claims Growing Together “is an integral part of modern Labor’s policy renewal”. [Read more…]

Reserve Bank Cuts Cash Rate To Historic Low Of 2%

The Reserve Bank has cut interest rates for the second time this year. The cash rate will fall 0.25% to 2.0%.

In its announcement today, the Reserve says: “The Board judged that the inflation outlook provided the opportunity for monetary policy to be eased further, so as to reinforce recent encouraging trends in household demand.”

Statement by Glenn Stevens, Governor of the Reserve Bank of Australia.

At its meeting today, the Board decided to lower the cash rate by 25 basis points to 2.0 per cent, effective 6 May 2015.

The global economy is expanding at a moderate pace, but commodity prices have declined over the past year, in some cases sharply. These trends appear largely to reflect increased supply, including from Australia. Australia’s terms of trade are falling nonetheless. [Read more…]

Reserve Bank Cuts Interest Rates By 0.25%

The Reserve Bank of Australia has cut the cash rate by 0.25% to 2.25%.

It is the first movement in interest rates for eighteen months. The bank cut rates by 0.5% during 2013 but made no changes in 2014.

In a statement, the Governor of the Reserve Bank, Glenn Stevens, said commodity prices have continued to decline and the price of oil has fallen significantly in recent months. Lower energy prices will strengthen global output and lower inflation. However, the bank says growth in Australia “is continuing at a below-trend pace”.

Stevens says the interest rate cut will “is expected to add some further support to demand, so as to foster sustainable growth and inflation outcomes consistent with the target”.

Statement from Glenn Stevens, Governor of the Reserve Bank of Australia.

Statement by Glenn Stevens, Governor: Monetary Policy Decision

At its meeting today, the Board decided to lower the cash rate by 25 basis points to 2.25 per cent, effective 4 February 2015.

Growth in the global economy continued at a moderate pace in 2014. China’s growth was in line with policymakers’ objectives. The US economy continued to strengthen, but the euro area and Japanese economies were both weaker than expected. Forecasts for global growth in 2015 envisage continued moderate growth. [Read more…]

Hockey Talks Of Economic Reform In Speech To London Institute

The Treasurer, Joe Hockey, has addressed the Institute of Economic Affairs in London on the future of the Australian economy.

HockeyIn his speech, Hockey discussed the importance of economic change. “Economies, and their enterprises, that are slow to adapt will be left behind,” he said.

Hockey compared Ford and Google: “The Ford Motor Company, which revolutionised manufacturing and the auto industry in the 20th century, currently has a market capitalisation of $53 billion after 110 years of operation. Google is more than 7 times larger in just 15 years.”

Structural reform will “lay the foundation for a more promising and secure future,” Hockey said. “Over the next decade, the traditional macroeconomic levers of monetary and fiscal policy will not deliver enduring growth… With fiscal policy constrained and monetary policy limited, the only alternative to facilitate growth is to undertake further structural reform in response to global change. Structural reform is indeed the key plank of Australia’s economic strategy under the Abbott Government.” [Read more…]