Matt Comyn says the economy faces its biggest test next year when taxpayer-funded income support measures are removed as he called for ongoing stimulus measures and predicted a long and uneven recovery
Commonwealth Bank CEO .
"The size of the economic contraction is less severe than we first anticipated, but we face a long and uneven recovery," Mr Comyn said via videoconference."One of the biggest challenges for Australia in 2021 and beyond will be how effectively we can move from the substantial and I think very effective income support that’s been in place, to one of fiscal stimulus generating aggregate demand and new jobs" Mr Comyn said.
Although the housing market has been more resilient than banks expected, both executives said house price falls were likely, with ANZ tipping 10 to 15 per cent declines, and CBA predicting 10 to 12 per cent falls. Both CEOs were also quizzed on Reserve Bank governor Philip Lowe's comments last month that responsible lending rules had weighed on credit growth.
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