RBA meets with Committee to hear business concerns

On Friday 15 May the Reserve Bank Assistant Governor, Sarah Hunter, joined Committee members for an update on RBA policy and to hear from local business about pressing economic challenges across Frankston and the Mornington Peninsula. 

Pictured: RBA Assistant Governor Sarah Hunter with CFMP Members - including CFMP Chair Shannon Smit and CEO Josh Sinclair.

This unique opportunity allowed local business leaders from various industries to detail the impact of inflation, economic uncertainty, rising interest rates and slowing consumer demand on our region's economy.

Participating members included representatives from agriculture, horticulture, healthcare, retirement living, development, retail, transport, tourism, finance/accounting and planning. 

Assistant Governor Sarah Hunter provided an updated economic briefing from the RBA following this month's interest rate rise and the Federal Budget 26/27 - before members could ask questions and share their stories.

Some of the key messages, feedback and intel provided by Sarah and the group included:

• Economic uncertainty impacting every level of the economy
• Skyrocketing costs in construction and low economic confidence is leading to fewer homes being built
• The sharp increase in fuel costs is having a major impact on the bottom line for business
• Biggest inflation challenges are on essential items (fuel, rent, mortgages)
• Retail data is different across the country, but consumer sentiment in NSW and Victoria is slowing
• Rising costs are affecting private investments into healthcare, and impacting ability of region's like ours to continue to deliver impactful health services
• Cost of development is increasing which leads to low confidence
• Visitors to the Peninsula have less disposable income to spend on hospitality, experiences and accommodation - this is having a detrimental impact on small business in our region
• Supply constraints and industry cost increases are fueling higher land costs in Victoria
• Business confidence and long term planning remains difficult with global uncertainty around supply chains
• While consumer demand falls, the cost of compliance continues to rise

These issues - and many more - are what we continue to hear from our members. This forum allowed us to provide a direct opportunity for feedback between our members and key decision-makers, like the RBA. 

Because while economic conditions remain tough around the country, we believe our region - with its unique economic and business conditions (and unique taxation and designation) - deserves a voice.

Thank you to Sarah Hunter and the RBA team for joining us and listening to our members' concerns. Thank you also to Searoad Ferries for hosting our meeting at the fantastic new Sorrento Ferry Terminal.