Interest rates fall with optimism
Older Australians are reportedly losing confidence in the nation’s economics. A newly released Allianz document highlighting the future optimism index revealed a nearrecord low at the end of last year, reportedly dragged down by a fall in optimism among senior Australians.
Older Australians are reportedly losing confidence in the nation’s economics.
A newly released Allianz document highlighting the future optimism index revealed a nearrecord low at the end of last year, reportedly dragged down by a fall in optimism among senior Australians.
Allianz Australia managing director, Niran Peiris, said in a statement the survey usually showed the 65-plus group was more optimistic than most other age groups.
However, the impact of falling interest rates on investment incomes and the effect this has on their financial circumstances appeared to be taking a toll on their optimism about the future.
Allianz and Newspoll conduct the bimonthly survey that measures levels of optimism about the future of the economy, environment and society, as well as their overall happiness.
The Reserve Bank of Australia cut the cash rate by 25 basis points at both its October and December board meetings.
The cash rate now stands at 3%, its lowest level since the 2008-2009 global financial crisis, after reductions totalling 175 basis points since November 2011.
Among age groups, the 65-plus Allianz index plunged to one point in December from 11 points in September, having stood at 17 points in November 2011.
The 18 to 34 age group stood at seven points in December, while the 35 to 49 and the 50-64 groups both stood at zero.
