Swan says economy is still strong

Swan says economy is still strong

Federal treasurer Wayne Swan says Australia’s economy is strong, despite a slow down in economic growth, and a cut to the interest rate.

The latest national figures, released today,show economic growth has slowed in the September quarter, growing by 0.5 per cent, down from 0.6 per cent in the previous quarter.

It comes after the Reserve Bank cut the cash rate at their monthly meeting yesterday, causing backlash from the Opposition and others, who say the government’s spending policies are causing a decline in the economy.

The official rate has only ever been at 3 per cent during the Global Financial Crisis and the credit crunch in 1961.

Mr Swan says the Australian economy is continuing to show resilience in a difficult global environment, showing a solid growth performance coupled with low inflation.

But Shadow Treasurer Joe Hockey says the Australian economy is not performing, and the Reserve Bank has proved this by cutting the cash rate.

Meanwhile, Westpac National Australia Bank and Commonwealth Bank have both moved to cut their variable mortgage rates by 20 basis points, following the interest rate cut.

ANZ is yet to make a move, saying it will wait until next Friday

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Amy Whittaker
Amy Whittaker 1402 posts

Amy joined the NRN team in August 2011, before graduating from a B of Arts (Communication-Journalism)/B of Sports Studies from Charles Sturt University in December 2011.

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