Small businesses are not receiving the full benefit of the Reserve Bank’s recent rate cuts because banks aren’t including the cuts in business banking products, according to a financial research service.
Canstar Cannex has released figures that show homeowners benefiting from a 2.8 percent rate cut of the three percent announced since September, while businesses have only seen 1.63 percent of the cut.
“We think it’s time the banks played their part,”‘ said a spokesperson from the Australian Chamber of Commerce and Industry (ACCI), director of industry policy and economics Greg Evans. “Small businesses have not received the full official rate reduction and that’s impeding economic expansion in Australia.”
The ACCI’s recent business confidence survey shows a decline in confidence and profitability, with many businesses expecting to cut staff. However, Australia still has reason for optimism with exports holding up, according to recently released Australian Bureau of Statistics figures showing our fourth consecutive trading surplus in November 2008 to the value of $1.45 billion.
