Rate cut needed to ease business banking pressure

Companies throughout Australia are finding it increasingly difficult to remain profitable while the dollar retains its high value.

Lots of firms – particularly small upstart enterprises – are reliant on loans in order to grow, but with standard interest rates still at 4.25 per cent, many are struggling to find suitable business banking options.

Indeed, the Reserve Bank of Australia (RBA) has opted not to lower rates this year and this prompted some institutions to hike the rates attached to packages such as business loans.

The Australian Chamber of Commerce has urged the RBA to reduce the cash rate by 0.5 per cent as soon as possible so that corporations can get easier access to credit.

Chief executive of the organisation Peter Anderson insisted that urgent action is needed to stimulate more economic growth down under.

"The time has come for Australia's central bank to move decisively to cut rates by a full half a per cent and for the retail banks to immediately pass it on," he remarked.

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