The federal stimulus is predicted to ship the funds right into a $220 billion deficit and can embrace fast-tracked private earnings tax cuts, measures to permit pandemic-hit companies to hold again their losses, and wage subsidies for 100,000 apprentices.
CreditorWatch chief economist Harley Dale mentioned the choice to carry official rates of interest at 0.25 per cent gave the central financial institution time to look at the measures proposed by Mr Frydenberg.
“In due course, the RBA will likely reduce the official cash rate to 0.10 per cent, but today wasn’t the day,” he mentioned.
“This is an appropriate decision given that the RBA already has measures in place to support Australian businesses. Tonight, it is the turn of the federal government to set out a clear agenda for recovery in what is the most important fiscal update in close to a century.”