Toyota job cuts means more rate cuts are needed

The Reserve Bank is under renewed pressure to slash interest rates next week as Toyota moves to cull 350 jobs.

National Australia Bank economist Alan Oster said Australian manufacturers, saddled with high labour costs, could not compete with offshore manufacturers.

And European countries that specialised in high-tech automotive production were getting a cheap ride on the backs of the weaker eurozone nations, which were undermining the euro's value.

Yesterday, the Aussie dollar was trading higher against the euro, at a near-record 81.3 euro cents.

Source: Herald Sun