Clime Investment Management has urged the government to pull together a summit for coordinating fiscal stimulus policy in response to the ailing Australian economy.
The investment manager has made the call to action after the Reserve Bank on Tuesday cut the official cash rate to an all new low of 0.5 per cent.
The RBA’s move was a widely anticipated response to the hits on global growth from the coronavirus outbreak.
Clime has asked the government to gather political party leaders and finance representatives, the Departments of Treasury and Finance, delegates from SMEs as well as large businesses and community groups.
Ideally, the summit would aim to develop a fiscal stimulus package with broad support across government, business and community, and should be able to be rapidly implemented.
Clime chief executive Rod Bristow believes the Coalition government is reluctant to embrace fiscal stimulus after the Labor party used it during the global financial crisis.
“The Reserve Bank of Australia is nearly out of ammunition to provide further monetary stimulus and fiscal stimulus is urgently required to prevent the Australian economy going into recession,” Mr Bristow said.
“We speak to thousands of Australian investors each year. Our view is the Australian public cares less about wedge politics and budget surpluses and more about maintaining an adequate standard of living and an appropriate level of support for communities.
“This has to take place by stimulating the economy by directly supporting, in particular, consumers and small businesses.”
He added the economy is in “unprecedented times” with the impacts of coronavirus hitting soon after the bushfires.
“The time for the Australian polity to show genuine leadership and support for the Australian economy is now,” Mr Bristow said.
Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
You can contact her on [email protected].