Stability first:PM
by Alan Thornhill
The Prime Minister has finally come out and said it.
“The first responsibility that we have as a government is to ensure the strength of the Australian economy and the strength and stability of the Australian financial system,” he said after meeting State premiers in Perth last night.
Well, perhaps not quite the first.
Defending the realm usually takes that position.
But let’s not quibble.
Mr Rudd probably put it better, when he had a second go at the reporter’s question.
“This is fundamental,” he said.
“It is fundamental to everything.”
He is, of course, absolutely right about that.
Mr Rudd explaining why his government has softened its earlier position on Australia’s banks.
Even a week ago, the government was pressuring the banks to pass on any cut in Australia’s official interest rates, in full.
It isn’t, any longer.
That’s because the global financial meltdown is a whole lot worse now, than it might have appeared to be then.
And the dangers are that much greater.
Australia’s banks are, indeed, well governed and well capitalised, as the government keeps telling us.
But that does not mean that they could not be touched, to some extent, by the world’s financial crisis.
The government is right to take one step back, and allow Australia’s banks to protect their position, at this delicate stage, by passing on only part of the interest rate cut that the Reserve Bank is expected to announce next Tuesday.
1 Comment
Profile
The Latest
9 February 2012
Doubts over Greek bail out weigh on European stock markets.
THE MARKETS
| All Ordinaries | 4357.100 | |||||||
| S&P 500 | 1353.35 | |||||||
| Aud To Usd | 1.0792 | |||||||
| Bhp Blt Fpo | 37.160 | |||||||
| Rio Tinto Fpo | 71.600 | |||||||
| Qbe Insur. Fpo | 12.160 | |||||||
| Fosters Fpo | 5.380 | |||||||
| Telstra Fpo | 3.370 | |||||||
News to Use
- Private health insurance may soon be dearer for many
- Joe Hockey’s admission
- The Latest
- Higher rates? You should know tomorrow
- Australia bans internet tobacco ads
- Extra help for flood victims
- A missed chance: builders
- Rates on hold – for now
- Business expectations “bounce back”
- Extra help for flood victims
- Retail sales still trending upwards
- A tight Christmas in resource rich States
- Child care assistance:don’t miss out
- A Ruddy spectre still haunts PM
- Treasurer slaps the big banks
Topics
- Airlines (12)
- Banking (1296)
- Business (1420)
- Communications (32)
- Disaster (83)
- Economics (1437)
- Environment (73)
- Financial advice (1186)
- Health (45)
- Housing (397)
- Inflation (393)
- Insurance (60)
- Investment (1243)
- Markets (977)
- Media (86)
- Politics (1304)
- Regulation (574)
- Rural australia (85)
- Security (13)
- Social security (134)
- Superannuation (160)
- Tax (224)
- The latest (1)
- Trade (268)
- Uncategorized (264)
Archives
- February 2012
- January 2012
- December 2011
- November 2011
- October 2011
- September 2011
- August 2011
- July 2011
- June 2011
- May 2011
- April 2011
- March 2011
- February 2011
- January 2011
- December 2010
- October 2010
- September 2010
- August 2010
- July 2010
- June 2010
- May 2010
- April 2010
- March 2010
- February 2010
- January 2010
- December 2009
- November 2009
- October 2009
- September 2009
- August 2009
- July 2009
- June 2009
- May 2009
- April 2009
- March 2009
- February 2009
- January 2009
- December 2008
- November 2008
- October 2008
- September 2008
- August 2008
- July 2008
- June 2008
- May 2008
- April 2008
- March 2008
- February 2008
- January 2008
- December 2007
- September 2007
- August 2007
Recent Comments
- Liam Knuj on The Prime Minister, Julia Gillard’s, New Year’s Message
- Change is for the better,change is where your heart grows stronger on Family Assistance boost
- Harry on The Prime Minister, Julia Gillard’s, New Year’s Message
- Matthew on Rates likely to be steady
- Alan Thornhill on Carbon price:Treasury’s modelling




Alan Thornhill is a parliamentary press gallery journalist. Private Briefing is updated daily with Australian personal finance news, analysis, and commentary.
[...] Stability first:PM [...]