"The higher-than-expected increase in interest rates announced by the Reserve Bank today, while testimony to the strength of the economy, is also a sober pointer to the sharp pick up in inflationary pressures – most recently from energy costs," Innes Willox, Chief Executive of the national employer association Ai Group said today.
"It also highlights the risk of further interest rate rises if there is a large increase in the upcoming national wage case decision.
"The rate rise emphasises the importance of lifting the supply capacity of the economy by raising productivity, accelerating the resumption of skilled immigration; and making further progress in lifting workforce participation. There is no time to lose," Mr Willox said.
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