Automobile tariff cut irrelevant

Trade-weighted index australian dollar 2008

Why it's impossible to get too excited about the planned cut in automobile tariffs from 10% to 5% in 2010. Despite the howls of capital and the unions, the volatility of the Australian exchange rate makes a 5% margin irrelevant. Already in 2008 the trade-weighted index has fallen more than 7 percent. Click the thumbnail for a larger image.

 

Posted on 09/16 at 08:38 PM.


Your comments

5:56 am, 28 Oct

Butler Consultants


I completely agree, the exchange rate can change the view of the 5% cut.

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