“Interest rate cuts would have multiple effects.
It would free up cash flow for the business sector and households with debt, cash flow that can be allocated to investment and spending.
Lower interest rates are also likely to lower the threshold at which investments are viable and as a result would underpin stronger business investment.
It is also likely that lower interest rates would mean, at the margin, a lower level for the Australian dollar which would support exports and domestic import competing firms.
It seems a no brainer for anyone interested to lowering unemployment and boosting wages.”