The rise in interest rates announced today, coupled with soaring household debt, high fuel prices and drought conditions, spell bad news for small retailers and customers in the lead-up to Christmas.
Small Business Minister Norm Marlborough said the interest rate rise meant a double-whammy for small retailers.
“With costs of mortgages going up again so close to Christmas, shoppers will have less money to spend, while retailers will have to pay more interest on their own business borrowings,” Mr Marlborough said.
The Minister said today’s rise meant the average small business operator with a $500,000 business mortgage over 25 years was now paying $240 per month more than in January this year.
“The increase equates to $2,884.80 per annum and over $72,120 for the life of the loan,” he said.
Mr Marlborough said this represented the Federal Government’s failure to manage the economy responsibly and keep its promise of lower interest rates.
“The small business sector in Western Australia may have been doing well from the economic boom times, but the Federal Government has let the sector down,” he said.
Minister's office: 9213 6500