Neil Mitchell of 3AW recently engaged in a conversation with Shayne Elliott, the Chief Executive of ANZ Bank, to discuss the economic implications of current trends and government actions amid ongoing challenges.
Elliott addressed the complexity of the economic landscape, stating, "It's not an easy story, actually. So there's a lot of confusing data out there." He noted that sectors like hospitality are struggling significantly due to recent developments in Victoria. However, he also mentioned some positive signs: "We're already seeing about 10 per cent...of those people who asked for a deferral are already back, starting to pay again."
Despite these signs of recovery, Elliott acknowledged potential setbacks due to new lockdown measures. "Potentially, there is going to be no doubt this will be a shock to the system," he remarked, highlighting concerns over psychological impacts on confidence.
Discussing financial support measures, Elliott explained that ANZ and other banks have offered extensions on deferrals. "We've agreed with the government and the regulators...to be able to extend that for up to another four months," he said.
When asked about further wage assistance like JobKeeper extensions, Elliott expressed his belief in targeted interventions: "A blanket extension is probably not necessary, but I think a targeted one will be."
Elliott also commented on proposed tax cuts: "Anything you can do to put cash into people's pockets...is ultimately going to be of benefit to the national economy."
Reflecting on future economic prospects under ongoing uncertainty regarding vaccines and lockdowns, Elliott pointed out Australia's relatively strong position. He stated, "We're not sitting on high levels of debt," emphasizing both capacity and willingness within Australia to navigate through challenges.
Elliott concluded by expressing concern over long-term confidence impacts due to unpredictability: "It's more psychological...it's how do you get the sort of animal spirits back."
The discussion provided insights into ANZ's perspective on navigating current economic challenges while preparing for future uncertainties.