Interest rate cuts have been welcomed by homeowners, and the farming and small business sectors deserve to be next in line according to The Nationals Senator for New South Wales John Williams.

The 25 basis points reduction announced by the Reserve Bank is welcome news and Senator Williams said it is pleasing to see the banks act immediately.

But he said farmers and small business which are used to paying “over the odds” for finance should get an early Christmas present in the form of an interest rate cut as well.

“These sectors are the backbone of our economy. In the case of small business it is the biggest employer in Australia.

Farmers struggle because they are price-takers, rely on inconsistent commodity prices and face the  vagaries of the weather.

The banks are quick to increase interest rates, so now is the time to offer a bit of goodwill and pass on the full 0.25 percent reduction”, Senator Williams said.