Heres an argument that confidence can go down after a rate cut especially a follow up rate cut or after it was anticipated as citizens supposedly get pessimistic about the economy.
But, here is another reason. With a rate cut prices rises, not just through inflation but a lower dollar increases the costs of imports and increases costs for overseas spend reducing consumption on domestic spend if you cannot help but spend more overseas if have no price sensitivity on your overseas spend.
Investors invest overseas as higher rates elsewhere!!! Less retirement income!!! Less taxes but more spending needed for pensions so more of other taxation thus government has a fiscal problem!!!
There is no doubt lower interest rates is destroying the Australian economy and citizens prosperity!!!!
