NSW says if in doubt, spend
With the latest national economic figures putting the fear into many experts and average Aussies alike, New South Wales is intent on spending its way out of a crisis.
Armed with their low-interest credit cards, NSW residents have been leading the charge in consumer spending, splashing out on everything from widescreen TVs to expensive makeup.
Speaking to the Daily Telegraph, spending expert Sevanth Sebastian said that the consecutive interest rate cuts from the Reserve Bank of Australia (RBA) had emboldened residents to pick up their credit cards and hit the shops.
"You can imagine how that has improved purchasing power," he told the paper, adding that the 400 basis point interest rate cuts seen since September were like getting an 18 per cent pay-rise.
This month, the RBA put an end to its interest rate cut bonanza, at least for the moment. For the first time since the start of the financial crisis, the group decided to leave interest rates unchanged at 3.25 per cent.