Rates decision to provide a timely boost for Christmas

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 4.25 per cent.

Business SA Chief Executive Officer, Peter Vaughan, said that today’s decision will provide a welcome boost to the local economy.

“We welcome this decision by the Reserve Bank, which will provide much needed relief in the lead up to Christmas,” Mr Vaughan said.

“It is now essential that the banks pass on the full reduction to businesses and households, so that the economy can feel the benefit of this decision.

“Last month’s interest rate cut provided some relief, however another reduction was required to boost business and consumer confidence levels.

“This was the last chance for the bank to decrease interest rates until February, and had rates been maintained at previous levels it would have kept spending money in people’s pockets.

“It has been a very challenging year for the business community and this is the ideal time to encourage consumers to get out and start spending before Christmas.

“Many important industries throughout the State remain under pressure and rising costs are adding to the challenges for local businesses.

“We look forward to this decision flowing through the economy and providing consumers with the confidence to spend, which will boost employment and economic growth.”