Relief as rates on hold
The official cash rate has been kept at 7.25% by the Reserve Bank of Australia.
The Australian Chamber of Commerce and Industry (ACCI), Australia’s largest business organisation, has supported the decision, suggesting that the current economic environment did not provide support for a decision to increase rates.
Recent ACCI surveys and official data suggest that the economy is slowing and the impact of the four previous interest rates increases may not yet have had their full flow-on impact across the economy, the ACCI reported.
Long-term policy measures were also floated by the ACCI with a longer-term perspective needed to counter the inflationary pressures. “A trade off between growth and jobs, or higher interest rates, is not in the national interest. It is important that the reform agenda is given priority in order to reduce inflationary pressures and allow the economy to continue to create jobs,” the ACCI stated.