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Business calls for interest rate cut

Release Date: 2/10/2012
The region’s largest business organisation, Illawarra Business Chamber, has called on the Reserve Bank to consider cutting interest rates at its meeting today in light of continuing subdued business conditions.

“Commodity prices appear to have peaked so we think it’s appropriate for the RBA to take a good look at the health of the rest of the economy and provide some interest rate relief for businesses and households,” said Mike Leask, CEO of the Illawarra Business Chamber.

“Large parts of the business community are suffering very subdued demand conditions at the moment.

“A cut in interest rates would help boost both business and consumer confidence.

“Our interest rates are high by international standards and with inflation contained there is some scope to cut interest rates. These high interest rates are one of the reasons the Australian dollar is so strong, which is having a negative impact on our struggling exporters and import-competitors.

“If the RBA does cut rates then we are also urging banks to pass this on in full to their businesses and mortgage customers so that the benefits of lower interest rates can properly flow through the economy,” concluded Mr Leask.

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