Cooma Chamber of Commerce’s David Shelley said the rise needed to be taken into context with the state of the local and Australian economies.

“At this stage it is our understanding that the Australian economy is performing well ahead of other economies in the world,” he said.

Mr Shelley said it was difficult to predict whether the forecast rate rises are prudent.

“Interest rates are still at historically low levels. Much will depend on whether the economy is at risk of overheating due to rapid growth, wage demands and inflation,” he said.

Mr Shelley said from a local perspective the concern would be if Australian interest rates and currency moved well ahead of other trading nations.

“A stronger Aussie dollar could see increased travel rather than domestic holidays whilst at the same time disadvantaging the competitiveness of our commodities for overseas sale,” he said.

A reduced interest in our commodities could be bad news for farmers but Mr Shelley said Cooma was relatively well placed.

“The Cooma Chamber of Commerce remain of the view that our town and region continue to have considerable potential yet to be realised,” he said.

NSW Farmers’ Association President Charles Armstrong asked the Reserve Bank of Australia to carefully consider the impacts of interest rate rises on the agricultural sector.

“While many parts of the economy are maintaining consistent growth, the latest National Account figures show our sector contracted by 0.4 per cent in the three months to June this year, the biggest contraction seen in the economy,” he said.

Mr Armstrong said farmers do not need any more blows given the drought.