Rate Hold Leaves Many Disappointed
The decision by the Reserve Bank to leave the cash rate unchanged in November has been questioned by industry, retailers and unions.
The RBA held its key rate steady at 3.25 per cent in the wake of stronger than expected inflation results, breaking a six-year trend of altering the cash rate on Melbourne Cup day. Many market economists had been predicting a further reduction in rates, which would have been welcomed by home loan borrowers.
The National Retail Association was disappointed the RBA didn't act, but said it was hoping for a rate cut in December as a Christmas gift to business owners, workers and consumers.
Construction, Forestry, Mining and Energy Union national secretary Michael O'Connor said the case for a cut could not have been clearer. "Huge swathes of the economy are desperate for relief. Manufacturing is under enormous pressure due to a high dollar."
The Australian Chamber of Commerce and Industry said business was disappointed with the decision.