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CEOs blame investors, banks for high hurdle rates

Chief executives and chairman aren't rushing to lower hurdle rates, despite urging from RBA governor Philip Lowe.

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Company bosses have rejected as 'risky' a call by Reserve Bank of Australia governor Philip Lowe that businesses reduce their hurdle rates and make investments with lower returns.

Mr Lowe said businesses need to adjust their investment strategy or they would miss the opportunity provided by the extended period of cheaper credit.

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Sue Mitchell writes the fortnightly Window Shopping column for the Financial Review and has covered retailing for over 30 years. Connect with Sue on Twitter. Email Sue at smitchell2045@gmail.com
Angela Macdonald-Smith writes on the resources industry with a focus on energy, including gas, oil, electricity and renewables. Connect with Angela on Twitter. Email Angela at amacdonald-smith@afr.com
Yolanda Redrup is the editor of the AFR Rich List. She previously reported on technology, healthcare and Street Talk. Connect with Yolanda on Twitter. Email Yolanda at yolanda.redrup@afr.com
Peter Ker covers resource companies for The Australian Financial Review, based in Melbourne. Connect with Peter on Twitter. Email Peter at pker@afr.com
Sally Patten edits BOSS, and writes about workplace issues. She was the financial services editor and personal finance editor of the AFR, The Age and the Sydney Morning Herald. She edited business news for The Times of London. Connect with Sally on Twitter. Email Sally at spatten@afr.com

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    Original URL: https://www.afr.com/policy/economy/ceos-blame-investors-banks-for-high-hurdle-rates-20191030-p535qx