Dubbo disappointed on rate hold

THE DUBBO Chamber of Commerce and Industry is “disappointed” the Reserve Bank of Australia (RBA) kept interest rates on hold yesterday.

Vice president Megan Dixon told the Daily Liberal the chamber hoped the RBA would cut the cash rate.

“An interest rate drop would’ve meant people had more money in their pockets which means more money spent on local goods and services,” Mrs Dixon said.

“We rely heavily on the retail sector in Dubbo.”

Dubbo residents and businessmen “sorely needed” the rate cut to boost property investment in the city.

Mrs Dixon said it was hard to predict how the RBA would act but she hoped a rate cut would come soon.

“The challenge is to get the balance right with what’s happening in the world,” she said.

RBA governor Glenn Stevens said the board judged it was prudent to leave the cash rate unchanged.

But he added that, with annual inflation currently within its target band of 2 to 3 per cent, the RBA had room to cut the cash rate further if needed. 

‘’The inflation outlook, as assessed at present, would afford scope to ease policy further, should that be necessary to support demand,’’ Mr Stevens said

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