ACCI joins in calls for reduction in interest rates

The Australian Chamber of Commerce and Industry (ACCI) has added its voice to the calls for the Reserve Bank of Australia (RBA) to reduce interest rates.

A survey of investor confidence published by the organisation revealed that business conditions fell from 49.1 points to 48.3 points quarter-on-quarter.

Greg Evans, of the ACCI, commented: "We certainly believe the Reserve Bank has a greater capacity to deliver a rate cut … inflationary pressures are receding and we are seeing that softness in the labour market."

He added that if the RBA lowered the cash rate from its current level of 4.75 per cent, then this would provide businesses in the country with "some relief".

According to the expert, the reasons for the low confidence levels are the high value of the dollar, carbon tax and continuing uncertainty in global markets.

Others to call for rate cuts include Westpac's chief economist Bill Evans, who suggested that it could prevent an increase in unemployment figures.

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