“Today’s decision on interest rates underlines unprecedented global volatility and makes clear Australia’s only option is building our economic resilience and boosting our competitiveness,” Business Council chief executive Jennifer Westacott said.
“The RBA has drawn a line under two years of emergency pandemic settings, now action is needed to manage the growing cost of living pressures on everyday Australians.
“We can’t control inflation driven by global volatility, but we can manage the domestic supply bottlenecks that are contributing to this spike and pushing up prices for Australians even further.
“Action to ease cost of living pressures in the short term has delivered relief to struggling Australians but to manage this challenge over the medium-term we’ll need to make the switch to a private sector led recovery.
“We can act to remove the blockages that make it harder and more expensive to do business and live in Australia.
“That will mean finally addressing the structural barriers in the economy, including acute worker shortages, an outdated skills system and record low business investment.
“And, we can finally take the friction out of our planning system for major projects, make sure the supply of housing is orderly and efficient and reduce the outdated red tape that makes getting products to market and projects off the ground more expensive for businesses and consumers.
“Removing these roadblocks to recovery is a fundamental step to laying the foundations for long-term and sustained economic growth that delivers higher wages and eases cost of living pressures.”