THE Illawarra Business Chamber, has welcomed the decision of the RBA to cut interest rates by 50 basis points as the right decision given the sluggishness of the economy, and now calls on the banks to pass on the cut in full to their business customers.
Illawarra Business Chamber CEO Mike Leask said the RBA’s decision to cut interest rates today will be welcome news to thousands of small business owners who are facing a tough economic environment and are now only two months away from the start of the world’s biggest carbon tax.
“This decision recognises the fact that many industry sectors are not experiencing the strong performance of our mining sector, and that they need some interest rate relief to help them through this period of weaker consumer confidence, a higher Australian dollar and increased global competition,” he said.
Mr Leask said it was now up to the banks to do the right thing and pass on the RBA’s interest rate cut to their businesses customers immediately.
“The RBA has sent the banks a strong signal that they want to provide relief to business owners. I expect the banks to do the honourable thing and pass this cut on immediately and in full to all of their business customers.”