Not sure if you are aware that interest rate rises are in response to CPI, which is a monetary tightening mechanism for the RBA to cool down the economy. Considering how leveraged our property market is, this will impact disposable income for many people. Also wage growth has remained low: "Growth in Average Earnings in the National Accounts (AENA) is also low. AENA increased by 0.1 per cent through the year to the June quarter 2017." (https://static.treasury.gov.au/uploads/sites/1/2017/11/p2017-t237966.pdf)
The Federal government needs to cut individual income tax. This will directly increase disposable income; thus allowing for higher consumption of goods and services to eventuate. Of course such a tax cut will eventually have an inflationary impact. The RBA may then need to raise interest rates in response to CPI.
MYR Price at posting:
48.3¢ Sentiment: Sell Disclosure: Not Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)