MELBOURNE (CU)_In November last year, the Reserve Bank of Australia slashed interest rates to a historic low level of 0.10 per cent with the aim of easing the economic pain wrought by the COVID-19 pandemic. Although many economies, including the Pacific nation, have begun to recover from the global health crisis, the top economists at the central bank met on Tuesday (6 July) and decided to hold rates steady for the month of July as well. Considering these circumstances, some experts believe that the time could finally be right for some of the long awaited infrastructure projects.
As cashed up foreign investors look to invest their money in safe assets, they are met with low interest rates, along with limited investment opportunities, which means there is a lot of cheap money around. Meanwhile, in countries like Canada and Japan, pension funds are tasked with investing hundreds of millions of dollars. However, given their ageing clients these funds are not willing to invest in money in projects that are too risky, which is why they would prefer to invest in slow-growth economies like Australia.
However, the Pacific nation is facing one crucial barrier…
