In this very low interest rate environment, interest rate preferences have changed substantially. Consumer tracking data since 2005 shows this and modelling of the data enables evaluation of how preferences will change with even lower interest rates.
The report shows that beyond a certain threshold, movements in interest rates can have no effect, or even a "perverse" effect on aggregate consumer spending growth. While these results apply to Australia, it seems likely that secular stagnation in advanced economies is reinforced by very low interest rates. The report evaluates another way to boost consumer spending growth.