Interest rates have been lifted too soon according to Australian Industry Group chief executive Heather Ridout.
Ridout told ABC Radio that she had spoken to a number of companies about the rate rise and they all believe the bank has gotten ahead of themselves.
“It’s a pretty tough environment to say the worst is behind us and we’ll have strong growth going forward, which might be consistent with a more neutral approach to monetary policy,” she said.
The Reserve Bank announced yesterday that they were lifting the official cash rate from three percent to 3.25 percent.
Ridout said it was too early to say that Australia was through the worst of the global economic downturn.
“Even though our surveys are showing improving conditions, the general view is that conditions remain soft and uncertain,” she said.