(5 March 2010 – Australia) The Reserve Bank of Australia’s decision to lift interest rates by 25 basis points earlier this week to 4 percent will add pressure to many businesses already facing a subdued outlook, Peter Anderson, chief executive of the Australian Chamber of Commerce and Industry said.Mr Anderson said, in a statement, that the economic recovery is uneven with parts of the manufacturing and services sector facing difficult trading conditions.
For many in commercial property, tourism and hospitality, particularly in regional centres, the outlook remains subdued and this rate hike will add to the pressures they are facing, Mr Anderson added.
Australian Retailers Association executive director, Russell Zimmerman, said retailers will feel let down by the rate decision just after February, which is always a hard time for families who are dealing with back to school costs, as well as credit card bills from Christmas.
Last month the RBA showed a wise and patient strategy by keeping interest rates on hold, but now it seems this approach has been replaced with a hasty decision and one that is out-of-touch with normal family financial cycles, Mr Zimmerman highlighted.