Also on the fiscal front, there is no reason why worthwhile public investment decisions that are currently planned should not proceed, as long as they really are worthwhile. On the monetary front, interest rates right across the spectrum have fallen.
Some fairly elementary calculations suggest that, as a result of the decline in interest rates that has occurred already, the fall in the household sector’s gross debt-servicing burden will be almost 3 per cent of household income. This is roughly equal to that seen in the early 1990s, when the cash rate fell from 18 per cent to 4.75 per cent.