According to data from Creditor Watch, 10% of hospitality businesses have shuttered in the past year, with the RBA’s decision to keep the cash rate unchanged at 3.85 percent providing no respite.
Roger Awar, who owns cafe Fresco-Bah in Adelaide’s city centre, said the rate decision was a double blow for proprietors like himself.
Like many, he had hoped for more positive news, meaning customers would spend more and his own interest repayments would be slashed.
“It’s a little bit disappointing â because it doesn’t look after us as business owners,” Awar said.
“We wish consumers had greater disposable income, leading to increased spending – everything else has surged in price – a reduction in interest rates would certainly be beneficial.”
Patrick Coughlan, co-founder of Riversdale Group and the Australian Pub Fund, mentioned that the hospitality sector is usually among the first to react to any rate decrease when it occurs.
He hopes that business surge might be coming next time the RBA meets.
“Our data is certainly showing the second half of the year is going to be a bit kinder,” Coughlan told 9News.
Businesses and mortgage holders may have to wait at least five weeks for the next rate decision in August.
For the first time, the RBA published the unattributed vote count from their interest rate decision yesterday.
This was a split decision. Of the nine members of the board, six voted to hold rates, while three were in favour of a cut.
