Business

Rates hold to hurt business

IT'S that time of the month when mortgagees, credit card holders and others in debt watch anxiously to see if the Reserve Bank of Australia changes the rate.

The RBA's decision to keep the cash rate on hold at 4.25% will be good for people in debt, but not so much for businesses.

Capricorn Investment Partners financial advisor Justin Baiocchi said people were still carrying a fair bit of debt, leaving less demand for services or goods.

"If they are not getting relief from the Reserve Bank, they are forced to cut their spending," he said.

The last rate cut was in December and it was cut by 25 basis points.

"Consumer confidence is at a very low level," Mr Baiocchi said.

"That also translates into less demand for goods or services."

He said businesses in small towns would be struggling as a result.

Mr Baiocchi said there were some controversial comments against the RBA's decision.

"The RBA is of the view that the resource boom is more than offsetting the weakness in the rest of the economy," he said.

Mr Baiocchi said comments included the boom's benefits were not widespread, but concentrated.

He said even within those concentrated areas, the money wasn't necessarily translated to more money being on groceries.

"Certain people are doing very well because they are on high money," Mr Baiocchi said. "And some businesses are doing well. But it's not necessarily filtering down to the average Joe."

He said he did not think big banks would go against the RBA's rate hold this month.

Topics:  business interest rates rba



Science Festival seriously awesome

CALLING everyone who wants to see, hear and be a part of something totally cool: this is where you need to be this March.

Drink where the cool kids do this summer

There are a bunch of new bars open in Brisbane, make sure you're there!

CHECK out these new funky bars.

Discover Brisbane’s laneway gems

Brisbane's laneways will surprise you.

NOT all of Brisbane City is as it seems…

Top five things to experience this summer in Brisbane

Tangalooma is amazing if you're keen for a dive, kayak or swim.

THIS summer get out and explore your capital city.

Don’t go chasing waterfalls…find them on these drives!

The Scenic Rim is just one place nearby that you'll love.

BRISBANE isn’t all bright lights and city slickers.

Your boots are made for walking these tours

Brisbane Greeters tours are a great way to learn the local history of the city.

YOU don’t need a bike or bus for a seriously good tour of Brisbane.

Is Brisbane the new arts and culture capital?

Check out GOMA's latest exhibition - it's all about hair! GOMA 10 Ambassador Patience Hodgson visits Nervescape V 2016 by Icelandic artist Hrafnhildur Arnardóttir (aka Shoplifter), commissioned for ‘Sugar Spin: you, me, art and everything’ at the Gallery of Modern Art, Brisbane. 
Photograph: Natasha Harth, QAGOMA

THE rest of the world should be envious of this line-up!

Want some business ideas? Head to town hall tomorrow

Brisbane Lions coach Chris Fagan (left) with Hugh McCluggage late last year, the number 3 draft pick for the Brisbane Lions.

Spots still available for business session with Brisbane Lions

Berlin Wall fragment lands in Warwick

COLD WAR COLLECTABLE: Dell Maxwell, with the Berlin Wall fragment, is helping to organise the annual book store in Warwick.

A token of the Cold War has turned up in Warwick

Warwick man gets probation for a bottle of Bundy

Bundaberg Rum Distillery

A WARWICK man left a mother and her daughter terrified..

Local Partners

Berlin Wall fragment lands in Warwick

A token marking the end of the Cold War has turned up in the most unlikely spot; an old box of books donated to a fundraising event in Warwick.


Sir Elton John coming to Mackay: What you need to know

Sir Elton will come to Mackay and Cairns in September.

Tickets to the concert go on sale on March 14

MAJOR ANNOUNCEMENT: Global superstar to rock Mackay in 2017

A major concert is set to rock Mackay this year.

Mackay, Cairns to host world's biggest superstars Sir Elton John

Fun for all at Killarney Show

IN FORM: Mitchell Muller from Tannymorel won class four of the led steer judging at the Killarney Show in 2016.

Check out what's on over three big days in Killarney

Sir Elton John coming to Mackay: What you need to know

MACKAY will play host to one of the world's biggest superstars Sir Elton John later this year.

MAJOR ANNOUNCEMENT: Global superstar to rock Mackay in 2017

A major concert is set to rock Mackay this year.

Mackay, Cairns to host world's biggest superstars Sir Elton John

Robert Irwin introduces Jimmy Fallon to wild guests

Robert Irwin introduces Tonight Show host Jimmy Fallon to a cuddly sloth.

ROBERT Irwin continues Steve's legacy.

MOVIE REVIEW: Trespass Against Us a 'tender' crime film

Michael Fassbender and Brendan Gleeson in a scene from the movie Trespass Against Us.

Tough British film about criminal clan proves touching

Crocodile, hippo fears as I'm A Celeb filming hit by flooding

Flooding hits the set of I'm A Celebrity ... Get Me Out Of Here!

Fears crocodiles and hippos could infiltrate I'm A Celeb camp

Small screen users make switch to smaller screens

In this photo taken Oct. 16, 2013, a girl plays Supercelll's Hay Day game on an iPad. The Finnish 'Clash of Clans' mobile game maker Supercell said Wednesday, Feb. 12, 2014, it plans to launch its third game next month on a tide of soaring revenues and profits. The new game, 'Boom Beach,' will be launched in March. It's been tested in Canada and Australia, ranking fifth in both countries' iPhone app store lists, according to the company. (AP Photo/Lehtikuva, Milla Takala)  FINLAND OUT

The digital age generation makes the switch

Nadia visits Coast to escape Married At First Sight drama

Married At First Sight's Nadia Stamp takes a breather from the show's drama at Mooloolaba.

MAFS bride unwinds on the Coast ahead of commitment ceremony

Popular island resort sells to loaded international investor

OUR PICK: Chris Foey's colourful shot of one of Gladstone's great tourism hot spots, Heron Island.

International investor snaps up piece of Gladstone paradise.

Expert: Why renters, home buyers may struggle

Matusik Property Insights director Michael Matusik.

What's next for the city's housing market

Massive seaside development of 3200 lots

DESIRABLE LIFESTYLE: The masterplan for the proposed Elliott Heads Estate.

"There's nothing else left along the coastline of Queensland now"

Potential home buyers punished for doing the 'right thing'

Should I go to university or buy a house?

50 more high rise buildings planned for Brisbane CBD

Height limits have been scrapped for Brisbane CBD

800,000 more people expected to work in city over next 20 years

Ready to SELL your property?

Post Your Ad Here!