Tomorrow the ECB is expected to lop a big .25% off their rate of .75%. Truly the ECB is having trouble with decreasing inflation (increasing deflation) and a massive 12% overall EZ unemployment rate.
Soon they must be at ZIRP, with monetary policy at zero, and should try stimulus after the German election by easing.
But for the grace of God go we.
With 3% the RBA stands ready to cut when and if required but again I say that there is a possible tsunami of inflation heading our way. Since it isn't of our making this stimulus may prove to hot to handle and rates might have to be wound in.
NG is fine if the property appreciates enough to make a profit large enough to offset accrued tax losses. NG has created a rental pool that houses hundreds of thousands of Australians.
We live in an upside world now. Should interest rates move lower there might be more enticement for home owners to buy/sell but NG becomes less attractive.
What matters more is the return on investment in a financial world chasing return on capital. NG isn't in the race with that.
Investors/retirees are more apt to buy for cash now.
If NG is so abhorrent then soon just might be the time to get rid of it. And in it's place spend billions on public housing. Our treasurer could slip another ten billion of expenditure into the budget and cover it with tax hikes.
