CUP DAY CASH RATE WIN

Written on the 1 November 2011

CUP DAY CASH RATE WIN

THE Reserve Bank of Australia’s (RBA) decision to today lower the base interest rate by 0.25 per cent to 4.5 per cent is expected to bring long overdue reprieve for businesses.

The Real Estate Institute of Queensland (REIQ) welcomed the move, saying September quarter data from the Australian Bureau of Statistics shows inflation contained at 2.3 per cent.

REIQ chairman Pamela Bennett suggests the new rate confirms the RBA’s earlier views on the economy were off target.

“Anyone working within the property industry in Queensland knew months ago that our economy was far from running away from us, which was contrary to the Reserve Bank’s assessment,” says Bennett.

“In Queensland especially, the last year has been a struggle and not only because of the floods and Cyclone Yasi. There continues to be an over-arching mood of uncertainty amongst consumers and business owners, even though our state has been the recipient of billions of dollars of mining investment.”

Master Builders Queensland (MBQ) believes the lower interest rate offers better security for the sluggish building industry.

MBQ housing policy director Paul Bidwell says the $10,000 Building Boost’s failure to lure more new homebuyers should entice the RBA to make a second reduction in December.

“We hope the decision to cut the official interest rate will add significantly to confidence, encouraging consumers and investors that the time is right to build or buy a new house,” says Bidwell.

“A second cut in December will go even further to improving consumer confidence, particularly as we expect to see building activity levels improving in the coming months.”

The Chamber of Commerce & Industry Queensland (CCIQ) congratulated the RBA for giving small to medium enterprises (SME) reprieve from weak consumer spending and confidence.

CCIQ president David Goodwin says SMEs are experiencing challenging domestic cost pressures.

“These factors including external pressures like global instability, competitive online retailing and the high Australian dollar make it harder for SMEs to compete and grow,” says Goodwin.

“This cut in interest rates will alleviate some of the pressure on those SMEs who are borrowing to keep their business alive.”


Latest News

BRISBANE VFX PRODUCTION COMPANY CLEANS UP AT MAJOR INTERNATIONAL ADVERTISING AWARDS

AUSTRALIAN production company Alt.vfx has broken records in global advertising, becoming the first business to win...

CYCLONE DEBBIE FORCES MINE, RAIL AND PORT CLOSURES AS IT WREAKS HAVOC IN QUEENSLAND

COAL and gold mines in north and central Queensland are being seriously impacted as Cyclone Debbie makes landfall ...

FLYING START TO 2017 PASSENGER NUMBERS FOR GOLD COAST AIRPORT

RECORD numbers of travellers used the Gold Coast Airport (GCA) in January this year, continuing a five-year trend ...

SUNCORP SAYS IT'S 'COVERED' AGAINST FINANCIAL COST OF CYCLONE DEBBIE

INSURER Suncorp (ASX: SUN) says it is "well protected" against the financial impact of Cyclone Debbie th...

Related News

RAY OF HOPE FOR SLATER AND GORDON AS LENDERS STEP IN

EMBATTLED law firm Slater and Gordon (ASX: SGH) has announced to the ASX that it has launched confidential discussion...

SPROUTX PROVIDES THE SEED FOR AGTECH STARTUPS

AGTECH innovation fund SproutX has opened applications for its first accelerator round, backed by $10 million from...

GAS PRICES MAY FORCE BRICKWORKS TO TAKE MANUFACTURING OVERSEAS

BRICKWORKS Limited (ASX:BKW) chairman Robert Millner says soaring energy prices may force the company to turn to offs...

CHINA CONTINUES TO COLLECT AUSSIE PROPERTY ASSETS

CHINESE coin continues to dominate Australia's offshore real estate investment market, accounting for almost h...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter