Business welcomes overdue rates relief

1 November 2011

The State’s leading business membership organisation, Business SA, has welcomed today’s decision by the Reserve Bank Board to cut official interest rates to 4.50 per cent.

Business SA Chief Executive Officer, Peter Vaughan, said that today’s decision will provide much needed relief in the lead-up to Christmas.

“There was a strong case to cut interest rates today and we welcome this decision by the Reserve Bank,” Mr Vaughan said.

“We have the expectation that banks will pass on the full reduction to businesses and households, so that the economy can feel the benefit of the Reserve Bank’s decision.

“This will provide some much needed relief to the many businesses that have been under pressure throughout the State.

“Increasing consumer demand in the lead up to Christmas is vital for the local economy, particularly retailers, and this is the ideal time to encourage shoppers to get out and start spending.

“It was important that the Reserve Bank delivered this interest cut following the premature rate rise last November which caused significant difficulty to the economy over last year’s festive season.

“Here in South Australia we have the highest unemployment rate in the country, business confidence is low and many important industries throughout the State remain under pressure.

“The business community also has the burden of the impending carbon tax which will make local businesses less competitive and put further pressure on employment levels.”