Credit support and RBA rates cuts welcome

“Ai Group strongly welcomes the initiatives taken by the Prime Minister and the Government, particularly their backing of small business, and the welcome support of credit and cut in interest rates by the Reserve Bank,” said Innes Willox, chief executive of the national employer association Ai Group.

“The measures to facilitate lending to small and medium-sized businesses are timely and of critical importance. Many businesses are cash strapped and uncertain what the next few months will hold. In this environment the availability of credit can mean the difference between survival and closure.

“The further reduction in interest rates and the clear statement that they will remain low for some time is also positive both for households and businesses. Lower interest rates will give households and businesses critical extra breathing room.

“We urge the banks to pass on the interest rate cuts in full,” Mr Willox said.