Interest rate rise another burden for business

Media Release: 5 May 2026

The Australian Chamber of Commerce and Industry (ACCI) says today’s rate rise by the Reserve Bank will add to the pain experienced by Australian business at a time of soaring fuel and energy prices.

Interest rates have now returned to their post-COVID peak of 4.35 per cent, following increases in February and March.

Australia’s largest and most representative business network says the rate rise again highlights the need for fiscal restraint in next Tuesday’s budget.

ACCI chief executive officer Andrew McKellar says, “higher interest rates will only add to the burden on businesses struggling to deal with surging input costs due to the fuel crisis.”

“The majority of businesses have had no choice but to absorb the recent spike in fuel prices rather than pass costs to customers,” said Mr McKellar.

“Today’s rate rise is another impost many businesses will feel they have to absorb on top of the already inflated costs of doing business.

“Businesses are facing higher interest rates, higher inflation, and lower growth, making business conditions very disappointing.”

Mr McKellar said the current fuel crisis only elevated the need to pursue economic reforms in the Budget.

“It is important to focus on reining in government spending, to take pressure off inflation and reduce the pressure for higher taxes,” Mr McKellar said.

Mr McKellar said the budget must also address the productivity problem by reducing the regulatory burden and encouraging businesses to invest and grow.

“Businesses will be looking to next week’s Budget for measures that can ease the cost of doing business, support business investment, reduce the pressure on inflation and increase the resilience of the economy,” he said.