MEDIA RELEASE
ACCI represents over 350,000 businesses in every State and Territory and all industries. Our network employs around
4 million employees, ranging from the top 100 companies to tens of thousands of small and medium businesses.
MR 135/10
LEADING AUSTRALIAN BUSINESS
Tuesday 2 November 2010
RBA DECSION MAKES THINGS DIFFICULT FOR MAINSTREAM BUSINESS
Statement by Mr Greg Evans, Director of Economics and Industry Policy
“Today’s decision to lift official interest rates by 25 basis points is a tough call for businesses and
other borrowers.”
“It is especially disappointing because it still appeared that the central bank had the flexibility to
delay a rate hike until the December meeting.”
“Despite the strength of some sectors such as mining, the great bulk of Australian businesses are
only in the early stages of economic recovery and are still waiting for stronger overall trading
conditions.”
Many businesses, particularly in consumer sensitive areas, will now be concerned about
maintaining consumer confidence in the lead-up to the important Christmas trading period.
The Commonwealth Bank-ACCI Business Expectations Survey, released earlier today, found that
all business expectations indicators for the quarter had declined, except for wages growth, non-
wage labour costs and selling prices.
There is also widespread concern retail banks may use the cover of official rate increases to make
adjustment over and above the RBA cash rate target.
If there is a positive note, ACCI hopes that this unexpected and unwelcome rate increase serves to
dampen inflationary pressures and delays the need for further increases until well into 2011.
For further information:
Greg Evans Director of Economics and Industry Policy 0407 204 559
Brett Hogan Director of Communications 0407 273 884
NEWS 
