Election 2016: Second interest rate cut on the cards



The article examines the implications of Interest rate cuts by the Reserve bank of Australia. The Reserve Bank may continue to reduce Interest rate supported by the continuing Disinflation.


Topics include Interest Rate, Investment, Saving, Inflation and Expansionary Monetary Policy. In an attempt to increase Employment and Economic Growth, the Reserve bank is reducing the Interest rates to decrease the cost of household borrowing and increase Consumption and Investment in the Economy to in turn increase Aggregate Demand and Employment in the Australian Economy.


Evaluation will cover effectiveness of Expansionary Monetary Policy on Consumers, Producers and Government through its impact on Unemployment, Inflation, Investment and Economic Growth in Short term and Long term.