“As long as interest rates are lower than trend growth, the cost of servicing the debt will fall as a proportion of GDP, and the debt burden will fall as growth picks up.”
Bendigo and Adelaide Bank CEO Marnie Baker said the federal budget deficit and sharp rise in government debt were “both affordable and necessary, and helped by Australias AAA credit rating and record low interest rates”.
Ms Baker said the flip side of low borrowing costs was low deposit rates, “which is a huge challenge for savers including self-funded retirees”.
What is most important now is ensuring as many people as possible can find and keep meaningful employment and that has got to be right at the heart of Australias economic policies.
Andy Penn, Telstra CEO
Read the full article at: https://www.afr.com/chanticleer/chanticleer-ceo-poll-ceos-support-debt-and-deficits-20201214-p56n6n