the podcast on
The biggest upshot of the latest OCR cut is likely to be the boost to consumer confidence.
The Reserve Bank's slashed the cash rate by 50-basis-points to 2.5%.
Major banks are responding by lowering floating and flexible rates after already lowering their fixed-term rates in recent days.
ABC Business Sales Chief Executive Chris Small told Mike Hosking businesses will benefit more indirectly from increased consumer spending, than directly from falling interest rates.
He says interest costs are only a small portion of a person's actual business costs, and businesses will always prefer for revenues to rise than for costs to fall.
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