Qld has strong pulse, but rate cut needed to revive southern states

The Reserve Bank is widely expected to cut interest rates by 0.25 per cent (or 25 basis points) today. The rate cut is probably necessary to revive the economies of southern states, which Queensland businesses have declining confidence in, according to new data from the Commonwealth Bank-CCIQ Pulse Survey report (from p. 2):

So, according to this survey, Queensland businesses expect economic conditions to improve in Queensland while worsening in the rest of Australia over the next 12 months.

The survey has particularly good news for North and Far North Queensland:

Of particular note, the North and Far North Queensland regions are enjoying their highest levels of business confidence for over 3 years, suggesting businesses are significantly rallied by State Government commitments for major infrastructure and industry development programs in these regions.

This confidence means businesses are more likely to invest and hire new staff in these regions.

This entry was posted in Macroeconomy. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s