Commonwealth Bank CFO Says Australian Firms Have Underinvestedby
Australian companies will need to increase spending after years of underinvestment, according to Commonwealth Bank of Australia’s chief financial officer.
Business and consumer confidence has increased after a change in prime minister and there has been a slight “uptick”in business credit, David Craig, CFO of the country’s largest lender, said at the Bloomberg Summit in Sydney on Wednesday.
Business credit grew in September at the fastest pace since February 2009, helping underpin the Reserve Bank of Australia’s stance that parameters for growth in investment are now in place as it holds its benchmark interest rate at a record-low 2 percent. The measure has lagged behind home-loan growth for almost seven years, RBA data show.