Businesses and unions want interest rates to be cut

The Reserve Bank of Australia (RBA) is coming under intense pressure from businesses and unions to sanction further cuts to interest rates.

National secretary of the Construction, Forestry, Mining and Energy Union Michael O'Connor told the Australian Associated Press that failure to make changes could result in thousands of jobs being lost across the country, as retailers and manufacturers are finding trading conditions increasingly difficult.

The RBA's board members are due to meet tomorrow (April 3rd) to discuss the current cash rate and Mr O'Connor believes it would be "economically irresponsible" for them not to enforce a reduction.

Many economists were shocked when the RBA opted not to lower interest rates in February and March, having already permitted two successive readjustments in November and December 2011.

"If the RBA continues to twiddle its thumbs, we are going to see manufacturing, retail, tourism and other vital sections of the economy experiencing a severe downturn," Mr O'Connor remarked.

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