The State’s peak business organisation, the Chamber of Commerce and Industry of Western Australia, welcomes today’s decision by the Reserve Bank to cut interest rates by a further three quarters of a per cent.

Reducing the target cash rate to 5.25 per cent is a welcome shot in the arm for the local and national economies at a time when business, consumers and investors need to be assured that action is being taken to help insulate Australia from the global downturn.

CCI hopes the Reserve Bank’s decision to substantially lower interest rates for the second time in as many months will stimulate the local economy and boost business and consumer confidence.

The rate cut sends a clear message locally and internationally that action is being taken to minimise any potential financial downturn on the Australian economy.

The Western Australian business community will have the opportunity to discuss the local impacts of the global financial downturn with the Federal Small Business Minister, Craig Emerson, when he attends a CCI hosted business briefing in Perth on Thursday.

Business will be able to ask the Minister questions about the financial crisis, and what action the Government is taking to strengthen the local economy.

CCI remains positive about the prospects for the WA economy. Of all the industrialised economies, Australia is probably the best placed; of all the States in Australia, right now WA is the place to be.

Statement by CCI Chief Economist John Nicolaou