Interest Rate Cut a Step in the Right Direction
“The cut in the official cash rate to 5.25% is a step in the right direction,” said Council of Trade Unions secretary Paul Goulter today.
“However, a cut of 0.5% was warranted, because there are a number of adverse economic indicators as well as pressure on the exchange rate.”
Paul Goulter said a cut of 0.5% would have helped to prevent any sharp contraction in economic activity – which could result in job losses.
“We note that a further cut is signalled, but we
would have preferred a more significant move today,” Paul