As the economy slows amid higher interest rates and small business owners brace themselves for a recession in three years, the Reserve Bank is expected to keep interest rates on hold when it meets later today.
Despite the nation's top chief executives telling The Age last week that they did not believe the local economy was headed for crisis, the March 2008 MYOB Australian Small Business Survey found 57% of small business owners were expecting a recession within three years. It said 58% believed the economy would fare worse during the next year, while nearly 60% indicated a negative outlook for interest rates.
"Naturally, the current volatility in world financial markets, and the upward trend in Australian interest rates, are having a big impact on small businesses," said managing director Tim Reed.
The news interest rates are expected to remain unchanged will bring welcome relief to struggling homeowners./DIV>
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