Interest rates are at multi-decade lows, and our current projections and assumptions indicate that further policy easing will be required to ensure that future inflation settles near the middle of the target range. The Reserve Bank’s forecast in the August Monetary Policy Statement was for annual headline CPI inflation to be 0.2 percent in the September quarter.
Finally, the contribution to an overall reduction in unemployment will be limited in any case. And I have not even mentioned the difficulties of ensuring rational planning of building or construction projects moved forward or subsidy schemes that stimulate initiation of projects.