Reserve Bank’s cash rate increase not welcomed by Camden Haven businesses

AS anticipated, the Reserve Bank raised the official cash rate by 25 basis points this week, taking interest rates from 3.6% to 3.85%.

While expected, the news has not been welcomed by businesses in the Camden Haven area, which are experiencing a post-Christmas and school holiday slump in trade.

This is particularly impacting small, independent traders, who feel this is a direct result of rising cost-of-living pressures affecting the entire community.

Camden Haven Chamber of Commerce President Luke Hadfield told News Of The Area, “many local businesses have reported a productive summer holiday period, which is encouraging.”

“However, there is growing concern that challenging economic conditions remain ahead.

“Outside of peak seasons, it will be increasingly important for locals to support local businesses.

“With an interest rate rise likely to impact discretionary spending, maintaining strong community support will be crucial for the resilience of our local economy.”

The Camden Haven area stretches from Lake Cathie to Comboyne and encompasses a wide range of businesses, with more than 100 in Laurieton alone.

Rowena Abbott, owner of Row’s Place Boutique and Café in Laurieton, told News Of The Area, “the rate rise is a real concern.”

“If people haven’t got money in their pockets, it can’t be passed on to small businesses.

“Things are tough already; this will just make it harder for everyone.

“Ideally, I’d love to see every shop front in the street full, but I’m not confident that is going to happen.”

The Australian Bureau of Statistics Census 2021 indicated a median weekly wage for the area of $506, compared with the national median weekly wage of $805.

“This disparity places increasing pressure on local businesses during the off-peak tourist season.

This rate rise marks the first rate change since August 2024 and the first rate rise since November 2023.

By Rachael THORPE