Jane Robertson, director and founder of Millwoods Shoes. Source: Millwoods Shoes
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The Reserve Bank of Australia’s decision to lift the cash rate target to 4.1% on Tuesday was hardly unprecedented, as small businesses have spent the past twelve months adjusting, sometimes painfully, to the consequences of higher borrowing costs.
But with all signs pointing to an economic cool-down and further drops in consumer spending, the June rate hike is likely to rattle SMEs running out of expenses to cut.
In March, when the cash rate target was newly lifted to 3.6%, a handful of small businesses told SmartCompany they were navigating lost revenue, reducing non-essential spending, and delving into future customer needs.
ABOUT THE AUTHOR
Senior Business Journalist
David Adams is a senior business journalist at SmartCompany. He is interested in the challenges and opportunities facing Australian businesses, along with the influences of technology, culture, and a changing climate. Before SmartCompany, David served as a reporter for Business Insider Australia. You can find him on Twitter at @DavidAdams_AU.
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