Bushfire crisis expected to further sap confidence in the Australian economy

Source(s): Guardian, the (UK)

By Paul Karp

Businesses damaged by bushfires will be eligible for additional grants of up to $50,000 in the latest pledge from the Morrison government’s $2bn disaster relief package.

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Businesses will also be able to access concessional loans of up to $500,000 if they have suffered significant loss of revenue or asset loss, opening the door to those indirectly affected by a business downturn rather than fire damage.

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In the latest business outlook report, released on Monday, Deloitte partly blames the Reserve Bank for its communication of the reasons driving recent rate cuts and warns that poor consumer and business confidence “risks becoming a self-fulfilling prophecy”.

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Deloitte is still predicting two further rate cuts in 2020, but believes the Reserve Bank will not take the “big step” of quantitative easing, despite suggestions it could buy government bonds as a last resort if it runs out of levers to boost the economy when it drops the official interest rates to 0.25%.

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Hazards Wildfire
Country and region Australia
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