Relief for business borrowers – sixth cash rate hold this year

In what must be a relief for borrowers, the Reserve Bank of Australia (RBA) has decided to hold the cash rate at 4.35 per cent. This is the sixth cash rate hold for 2023.

In a Media Release from the RBA on 5 December 2023, RBA governor Michelle Bullock said: “Higher interest rates are working to establish a more sustainable balance between aggregate supply and demand in the economy. The impact of the more recent rate rises, including last month’s, will continue to flow through the economy.”

“Holding the cash rate steady at this meeting will allow time to assess the impact of the increases in interest rates on demand, inflation and the labour market.

There are still significant uncertainties around the outlook. While there have been encouraging signs on goods inflation abroad, services price inflation has remained persistent and the same could occur in Australia,” Ms Bullock said.

Ms Bullock also said: “Whether further tightening of monetary policy is required to ensure that inflation returns to target in a reasonable timeframe will depend upon the data and the evolving assessment of risks.”

The relationship brokers have ongoing with their clients is key at this time. In an Advisor article from 5 December 2023 (available at, the executive director of aggregator Connective, Mark Haron, is quoted saying brokers can “demonstrate how they can be a partner to clients” as 2023 draws to a close.

“This will still be a catalyst for many borrowers to review and potentially change their financial situation,” Mr Haron is further quoted.

The Advisor article also quoted Sam White, Aggregator LMG’s executive chairman, who commented that the rate hold will provide borrowers with a “welcome reprieve” as the festive season approaches.

“It’s an early Christmas present, albeit it’s hard to know how next year will start. There [are] still lots of uncertainty,” Mr White is quoted. “With the RBA Board not meeting again until February, we have a window of stability that will hopefully extend into 2024, giving borrowers improved confidence in their decision making.”

Mr White also said that annual CPI is “heading in the right direction” and that the RBA will want to look closely at its progress before making changes to the cash rate. “Brokers can expect to have a busy first half of 2024, especially in post-settlement care,” he is further quote.

As there may be renewed interest in business borrowing in the new year, Solve My Debt Now may be able to negotiate with your client’s business creditors for tailored solutions. Our aim is to help businesses avoid outcomes, such as selling business assets to repay debts.  Unsecured creditors may also receive more cents on the dollar.

Solve My Debt Now is therefore an alternative, holistic solution for businesses in trouble. Our debt relief solution aims to achieve any or all of the following outcomes for businesses:

  1. Negotiating with creditors for reductions and waivers in debts based on the current business circumstances.
  2. Negotiating with creditors to reduce or suspend payments on interest.
  3. Negotiating creditor payment plans within your estimated budget to make paying back business debts manageable over time.
  4. Where successful, avoiding a 5-year black mark on a business credit file in contrast to the outcome of insolvency.
  5. Where successful, avoiding a black mark on a director’s credit file for 10 years in contrast to the outcome of insolvency.
  6. Minimising contact between the client and the creditors where possible .
  7. a holistic business debt relief solution that is an alternative to immediate insolvency.

The insights you provide your clients at a difficult time in their business may be key to navigating their business challenges.

Though the economic terrain may seem daunting for an at-risk business, by providing clients with your specialised expertise, personalised guidance, and access to a diverse range of information,  you may help to guide them through their difficulties by offering tailored solutions for sustainability and growth.