June 5, 2012
The National Farmers’ Federation has welcomed today’s interest rate cut, calling on financial lenders to pass the full 0.25 per cent cut to their agribusiness customers.
“For the second month in a row, we’ve seen a rate cut by the Reserve Bank of Australia in the official cash rate, yet farmers and agricultural businesses are not reaping the benefits,” NFF CEO Matt Linnegar said today.
“Last month, the NFF Agribusiness Loan Monitor showed that in the week following the RBA decision, only one bank made any reduction in their agribusiness loan rates.
“This month, we hope that the Monitor will show a reduction in rates across the board from the financial lenders, taking into account the significant cuts made by the RBA during this period.
“Like all business owners, farmers cannot afford to miss out on interest rate cuts designed to boost the weakening economy and encourage spending growth.
“In fact, just this week we have heard reports that rural confidence has slumped in the last quarter as a result of lower commodity prices, a sustained high Australian dollar and an increase in farm input costs.
“And, with the government’s Carbon Tax set to be introduced from July 1 … now is the time for some positive news for the farming sector.”