Rate cut 'vital for workers'

A cut in the base rate of interest is essential for Australians in unsecure jobs and with hefty personal debts, one expert has claimed.

Small business money guru Julie Bishop, writing for the My Small Business section of the Sydney Morning Herald, explained that many employers are worried they are going to have to let their workers go as trading dries up.

Furthermore, she noted that many are worried their staff will be unable to keep up with payment demands owed on items such as home loans, credit cards and car loans.

“The <a href=”//mozo.com.au/reserve-bank-interest-rates">Reserve Bank should be motivated by the need to take pressure off small business, employers, households and the broader community," she insisted.

She added that while some people will benefit from high interest savings if the banks do not pass on a cut, it will leave many Australians struggling to keep up with higher repayments on their home loans and car loans.

Many experts predict that the Bank will cut base rates by as much as 0.5 per cent when it meets tomorrow for its monthly decision.ADNFCR-1761-ID-18817309-ADNFCR