Friday, October 16, 2009

Rate rises do matter to consumers

Just incase you think that a rate rise wont dampen consumer confidence, or that it takes time to work its way through to discretionary expenditure, maybe you should consider the take up of pay TV as a guide.

Robert Gottliebsen was interviewing Kim Williams for Business Spectator. Williams is the head of Foxtel in Australia. If you've been watching any TV lately, you'll know that Foxtell are currently conducting a major marketing campaign (perhaps irritatingly so). In the interview Williams mentioned he noticed that when the Reserve Bank increased interest rates last week, pay TV order conversion dropped sharply, despite inquiries remaining strong.

6 comments:

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Parag said...

Of course rise in interest rates matters consumers. It deepens the already burden on them.
Personal finance

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