Mr. Peter Esho, who is an entrepreneur, economy expert, and investor highlights the importance of the recent cuts to the interest rates by the Reserve Bank of Australia during the challenging times of Coronavirus.
The RBA has recently dropped the interest rate from 0.25% to 0.1% at a historically low level.
Our guest, Mr. Esho, said that this move was necessary to support the Australian economy.
This comes as many Australian states had felt the economic damage that resulted from Covid-19 such as the state of Victoria.
When asked about whether the large banks of Australia, also known as the big four will have to comply, Mr. Esho explained that there is no statutory obligation for financial institutions and banks to follow the RBA’s interest rates cuts.
However, the banks do follow the steps of the RBA most of the time.
This means that this could have an impact on residents of Australia regarding their loans and credit cards.
Mr. Esho also predicted that there could be another cut to the interest rates in the future.
Our guest was also asked about the impact of US Presidential elections on the Australian economy.
He added that the stock market had seen an increase in numbers although Mr. Joe Biden had promised to ban fracking.