NSW: Chamber of Commerce welcomes decision to leave rates

AAP General News (Australia)
04-06-2005
NSW: Chamber of Commerce welcomes decision to leave rates

SYDNEY, April 6 AAP - The NSW Chamber of Commerce welcomed the Reserve Bank's decision
to leave interest rates unchanged today, saying a rise would not have been well received
by business.

The Reserve Bank left interest rates at 5.50 per cent in the face of growing questions
over the strength of the economy.

Economists had expected the bank to announce another 0.25 percentage point rate increase,
following its March increase, but key economic indicators are now suggesting the economy
is slowing.

NSW Chamber of Commerce chief Margy Osmond said she was pleased the Reserve Bank had
erred on the side of caution and resisted the temptation to further increase rates before
the release of key wages and inflation data at the end of April.

"A second rate rise coming so quickly after the first would not have been well received
by business and had the potential to affect business confidence," she said.

"The decision was responsible and reasoned, and will allow the bank to properly assess
the impact of the first rate increase before making any further moves."

AAP acb/kp/dl

KEYWORD: RATES CHAMBER

2005 AAP Information Services Pty Limited (AAP) or its Licensors.