07/03/2023 - 10:17 am

Interest rate decision: Ai Group comment

“Today’s decision by the Reserve Bank of Australia to raise the cash rate target to 3.6% is an unfortunate but necessary step to ensure price stability”, said Innes Willox, chief executive of the national employer association Ai Group.

“High inflation impacts both households and businesses, who are facing rapidly increasing input costs. In a period where Australia faces mounting economic headwinds, it is imperative that inflation is brought back to normal levels.

“Businesses, governments and employees must now exercise moderation in price setting and wages negotiations. Further increases in prices or wages will only exacerbate inflationary pressures, put further pressure on interest rates and lead to increasing severe employment outcomes,” Willox said.




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