Interest rate cut offers a fillip

THE latest 0.25 per cent interest rate cut, coming just one month after a full 0.5 per cent rate cut, has been heralded as good news for small business.

The rate cut will flow on immediately to business rates, which should help stimulate business investment.

It will also help boost consumer confidence and, more importantly, consumer spending.

Small Business Development Corporation managing director George Etrelezis said consumer confidence had to go up when people realised they could take $30 to $50 a month off their mortgage payment.

Recent figures from the Institute for Factors and Discounters showed the Austr-alian factoring and invoice discounting market grew by 36 per cent last year, which Mr Etrelezis said showed there was declining activity in the market.

Chamber of Commerce and Industry chief economist Nicky Cusworth said the CCI had always thought the Reserve Bank of Australia had been too hasty to raise interest rates