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Interest rates at 2% will add petrol to the hot fires of the Sydney and Melbourne property markets, but probably won’t do much to stimulate jobs or growth in the economy. What Glenn Stevens says is that fiscal stimulus is needed. He is really giving Treasurer Joe Hockey the nod to go ahead and put some spending into the budget. Whether Mr Hockey can reverse his parsimonious rhetoric will be an interesting game to watch

Paul Mazzola
Glenn Stevens

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