Your business accountant sharing within you some potentially great news
There have been some major developments that as your small business accountants in Sydney we think we should share with you.
Yesterday the Reserve Bank of Australia (RBA) announced it was slashing the official interest rate to 3.75%, down by 0.50%.
We now wait with anticipation to see what the big four banks will do. It would seem that they are most likely to not reduce their lending rates by the full 0.50% but will instead reduce their lending rates by a lesser percentage. No doubt, the banks will take their time in considering their decision, as is their standard policy.
From a small business focus, the reduced interest rate once passed on will flow into small businesses in a number of beneficial ways.
· Approximately one third of the population that are paying off mortgages will now have some more flexibility to spend their disposable income in a less penny pinching manner. For small local retailers this will bring some relief to their current predicaments and hopefully see rising sales where they have so far been flat at best.