Catch up on the news that matter to small business as we serve up our daily dose of the latest news briefs. Here’s what you need to know on Wednesday, August 28 2019.
Interest rates could hit all time low
Interest rates could be set to drop even lower with the Reserve Bank of Australia’s RBA deputy governor Guy Debelle suggesting on Tuesday it’s possible interest rates could fall to almost zero as the RBA attempts to stimulate the economy. Debelle said the RBA has looked to the experiences of Canada, and the United Kingdom where rates have in the past been cut to 0-0.5%. Earlier this month, the RBA downgraded forecasts for economic growth, inflation and employment.
Super rise unlikely
Business owners may breather easier following comments by Liberal MP Jason Falinski who suggested behind closed doors there is no interest within the Government or opposition to lift the compulsory superannuation rate. Currently, the compulsory super contribution sits at 9.5 per cent but it is proposed that compulsory superannuation contributions rise to 12 per cent. Falinski told the Australian Financial review there is little appetite for the raise on both sides of politics.
Dow Jones falls further
The Dow Jones has slipped further following a rocky start to the market, as US fears of a recession continue to escalate prompted by the worsening trade crisis with China. The fears have prompted a 28 per cent rise this week in the number of Americans googling ‘Dow Jones’, indicating main street USA is worried about the economy. Meanwhile, the Australian dollar has weakened slightly to 67.5 US cents.