The Reserve Bank cannot set interest rates solely for NSW. But if it could, rates would be about 2 percentage points lower than they already are, economists say. The Herald has calculated if the banks lowered interest rates by 2 percentage points - NSW borrowers with a $300,000 mortgage would be about $380 a month better off.
The chief economist at nabCapital, Robert Henderson, said that if policymakers were setting rates solely for the NSW, “you would want very stimulatory settings”.
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