Business chiefs want to see more rate cuts

Companies are still desperate to see the national cash rate fall from its current level of 3.5 per cent.

Entrepreneurs were left disappointed yesterday (July 3rd) when the Reserve Bank of Australia (RBA) decided against a third successive monthly interest rate reduction.

While the move was hardly surprising, Australian Chamber of Commerce and Industry economics director Greg Evans believes further action is required to stimulate economic growth.

Dow Jones Newswires reports that uptake of business loans reached a three-year high in May, according to figures released by the Australian Prudential Regulation Authority.

This clearly shows that firms are increasingly looking to expand, but Mr Evans feels that they need a helping hand from the RBA and he fully expects interest rates to fall again in the next six months.

He told the Australian that organisations in certain sectors may not have felt the benefits of the recent 75-point rate cut just yet and instability in Europe could prompt the RBA to make more reductions.

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