RBA urged not to raise interest rates

Business lobby group the Australian Chamber of Commerce and Industry (ACCI) has urged the Reserve Bank of Australia not to increase interest rates.

Greg Evans, director of economic and industry policy at the ACCI, claimed this move would have a serious impact on a variety of sectors, reports the Australian Association Press.

Those with home loans may be among the people adversely affected should the central bank decide to move the cash rate up from the 4.75 per cent level it has been at since November last year.

"Our message to the Reserve Bank would be that a pre-emptive rate increase could severely damage those parts of the economy outside the mining sector," Mr Evans stated.

This is despite saying that the ACCI "understands" the need to take steps to manage the inflationary pressures the country is under.

Earlier this week, Glenn Stevens, governor of the RBA indicated that rates would be increased "at some point" in the future for this reason.

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