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Speaker 1: So fifty points it was. The Reserve Bank tells us

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Speaker 1: the cash right remains restrictive, so another fifty next month

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Speaker 1: isn't a guarantee, but the momentum appears to be there now.

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Speaker 1: The politicians leapt all over and of course suggesting better

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Speaker 1: days are ahead. ASP Chief Executive Victoria short with us

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Speaker 1: Victoria morning.

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Speaker 2: Yeah, good morning, Mike.

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Speaker 1: As an exercise and fiscal management over the last couple

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Speaker 1: of years, as we come out the other side of this,

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Speaker 1: how would you judge this this move?

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Speaker 2: Look, I think it's great news for households and it's

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Speaker 2: great news for businesses. It means that inflation is getting

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Speaker 2: down to in that target range, and even though it's

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Speaker 2: going to take time to flow through. I think the

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Speaker 2: big question everyone's asking though, is where too from here?

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Speaker 2: So I think that's the thing that we're really turning

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Speaker 2: our attention to.

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Speaker 1: Do you have any answers on that? Because the commentary

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Speaker 1: leading into yesterday was anywhere between twenty five and seventy

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Speaker 1: five and I've not seen that before. And there seems

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Speaker 1: to be some ankst around what comes next as well.

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Speaker 1: Does anyone actually know what's going on?

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Speaker 2: Well, I mean, obviously the our central bank will make

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Speaker 2: their own independent decisions. But what we think is that

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Speaker 2: four seventy five the cash rate is still what we

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Speaker 2: describe as restrictive, and we think that the neutral rate

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Speaker 2: is around three point two five. So you can take

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Speaker 2: from that that there's a bit to go and we

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Speaker 2: always have to be careful though that. You know, world

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Speaker 2: events can change. But we do think that there is

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Speaker 2: further cuts ahead. We think it could be another fifty

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Speaker 2: basis points in November, but we think that will continue

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Speaker 2: next year. You know, we're just going to make sure

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Speaker 2: that inflation keeps coming down to their target range.

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Speaker 1: Yeah, what's your sense on that? I was reading an

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Speaker 1: interesting thing out of Australia. Are the savings rates in

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Speaker 1: Australia are way higher there than they have been here

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Speaker 1: through this whole COVID period? In other words, are we

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Speaker 1: the sort of people who, when given a chance, will

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Speaker 1: run with it and start spending with alacrity or not?

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Speaker 2: Yes, we do like to spend the care and we

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Speaker 2: certainly borrow more than we save, so you know, we

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Speaker 2: would always say that you think about your financial wellbeing

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Speaker 2: and if you're not sure, come and talk to us

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Speaker 2: and we can help.

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Speaker 1: What I also read yesterday was zero point I think

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Speaker 1: it was zero point four percent, or might be zero

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Speaker 1: point six percent of mortgages were under some sort of

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Speaker 1: stress in general, which means the vast majority arn't are

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Speaker 1: we actually okay, and that we'll be going into the

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Speaker 1: reserve banks thinking. In other words, for all the dire talk,

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Speaker 1: it's not as dire as it could be. Therefore they

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Speaker 1: need to be careful.

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Speaker 2: Yeah, so look, I think that's certainly what we're seeing.

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Speaker 2: We're actually seeing that households and businesses have actually navigated

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Speaker 2: this difficult period pretty well. And when I have a

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Speaker 2: look at our data of customers who are getting extra support,

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Speaker 2: those who are feeling stressed because of the interest rates

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Speaker 2: are about a third of our customers that we're supporting.

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Speaker 2: The other customers it's for actual sort of life events.

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Speaker 2: It's health reasons, losing a job, it's divorced, it's things

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Speaker 2: like that. So it's true that the majority of the

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Speaker 2: people that we're supporting as a result of life events

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Speaker 2: rather than interest rates.

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Speaker 1: Good insight. I appreciate it very much. Victoria's short Who's

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Speaker 1: the ASP chief Executive? For more from the Mic Asking

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Speaker 1: Breakfast listen live to news talks there'd be from six

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