THE Reserve Bank of Australia this afternoon voted to hold commercial interest rates at 3.85 percent, in a split decision – six votes to three.

There had been mounting speculation that the RBA might cut rates today, leaving some commentators surprised by the decision

Today’s decision by the RBA to keep the official cash rate on hold will be disappointing news for borrowers and business.

Federal Treasurer Jim Chalmers told a press conference this afternoon that millions of Australians would be disappointed that the RBA had decided to leave interest rates on hold.

At the same time, the Treasurer has welcomed the RBA’s decision to publish an unattributed record of votes on the cash rate for first time. The board revealed its decision to keep rates steady was split, with six board members voting in in favour and three against.

“Obviously it will be a source of some interest that the reserve bank board was not unanimous on this occasion, that there were different views expressed around the board room table, and we know that because of the publication of these unattributed votes,” Mr Chalmers told ABC.

“I think that transparency is a welcome change.”

However, Australia’s largest accounting body, CPA Australia, said that tangible productivity reforms from the Albanese government’s Economic Reform Roundtable next month would provide the biggest boost to small business.

CPA Australia’s business investment lead, Gavan Ord, said many small businesses were looking for further rate cuts and genuine productivity reforms. Both were essential to restoring confidence and stimulating growth more than any single cash rate decision, he said.

“Businesses sentiment is beginning to shift and further rate cuts this year would be very welcome, but most small businesses remain bound by uncertainty and are still taking a cautious approach,” Mr Ord said.

“A lower interest rate environment would open up more options for small businesses who could choose to renegotiate loans and reduce their debt burdens, or take the opportunity to invest in growth and perhaps take on more workers.

“But the biggest boost for small businesses right now would be substantive, long-term commitments from government to revitalise the business environment by removing unnecessary regulatory burdens and fostering entrepreneurship. This must be a key deliverable from the Economic Reform Roundtable in August.”

Mr Ord said the Albanese government’s focus on productivity and economic growth is already a positive signal, but small businesses will be looking for tangible progress in the months ahead.

“Rate cuts alone will not be enough to boost lagging business confidence,” he said. “The business community is looking to government to back-up its positive messaging with genuine reforms that help move the needle.

“For years, many small businesses have been in survival mode, navigating tough economic waters and a challenging operating environment. Though the downward pressure on interest rates and supportive messaging from Treasurer Jim Chalmers are encouraging, small businesses need to see real and measurable reforms before they’re ready to take off their lifejackets.”