REMEMBER WHEN

GOLD COAST BULLETIN Thursday, March 8, 2001

THE economy works in cycles and in 2001 it was “sinking”.

Gold Coasters woke on the morning of March 8 to find that homeowners would save an average of $24 a month after the second interest rate cut in two months. The Reserve Bank reduced the official rates by 0.25 per cent and most lenders said they would pass on the savings to their customers.

The reduction came as new economic figures showed Australia was on the brink of another recession. After 10 years of consistent economic growth, the economy appeared to slam into reserve, bringing another blow to the re-election hopes of the Federal Coalition.

Prime Minister John Howard was quick to blame the slowdown on the Reserve Bank’s decision to raise interest rates in late 2000.

However, the fears of early 2001 did not pan out. The Coalition was re-elected with a reduced majority in October 2001 following an economic recovery, the September 11 terrorist attacks and the Tampa crisis.

A recession did not come that year and economic growth continued unabated through the remaining years of the Howard government and the Rudd/Gillard period.

Now, nearly 17 years later, economic growth continues unabated, with Australia yet to endure another recession since the early 1990s.

Meanwhile, the world was a stage for Coast supermodel Kristy Hinze but she still called Queensland home. Kristy held star billing at the David Jones fashion parade in Sydney and bought a holiday home in Noosa so she did not loose touch with the sunshine state.