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Small Businesses Urge Spending Cuts After RBA Lifts Cash Rate to 2008 High
Small business groups call for spending cuts after the RBA raised the cash rate to a 2008 high of 4.85 per cent.
Key points
- The RBA lifted the cash rate by 25 basis points to 4.85 per cent in a split decision.
- COSBOA is calling for a 25 per cent reduction in the cost of regulation and cuts to red tape.
- HSBC chief economist Paul Bloxham puts the odds of a recession at 50 per cent.
Why it matters. Higher interest rates could hit customer spending, business loans and home mortgages, adding pressure on small businesses that have been absorbing higher costs for some time.
The Reserve Bank of Australia lifted its cash rate by 25 basis points to 4.85 per cent on Tuesday in a split decision, the highest level since November 2008. Council of Small Business Organisations Australia chief executive Skye Cappuccio said small businesses were hit by the rise and urged the government to cut spending ahead of the Mid-Year Economic and Fiscal Outlook.
Latest updates
Small Businesses Urge Spending Cuts After RBA Lifts Cash Rate to 2008 High
The Reserve Bank of Australia lifted the cash rate on Tuesday to its highest level since 2008. The Council of Small Business Organisations Australia warns the rate rise has dealt a significant blow to small firms. The group is calling on the Albanese government to cut spending, take practical steps to reduce cost pressures and boost productivity. Small businesses say they are already struggling with rising costs. The government has not yet responded to the calls.