Businesses 'concerned about interest rates'

Mozo

Wednesday 06 July 2011

More than one-quarter of executives in Australia assert that interest rates are the primary influence on their business.

Aussie firms 'concerned about interest rates'

These are the findings of the latest Business Expectations Survey by Dun & Bradstreet, which noted that concern over interest rates has subsided since December 2010, when it was at 40 per cent.

"Interest rates remain the primary cause of concern among company executives and three-quarters will avoid accessing credit in the coming quarter as they wait for the Reserve Bank to make a move on interest rates," the study stated.

It noted that the forecast rise in rates is likely to place pressure on some sectors, such as the retail and manufacturing industries.

Yesterday (July 5th 2011) the Reserve Bank of Australia announced it would keep the cash rate at 4.75 per cent for the eighth consecutive month.

Governor Glenn Stevens said in a statement about the decision that the "mildly restrictive" policy was still an appropriate course to take.

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