The Australian Retailers Association (ARA), has expressed disappointment at the Reserve Bank of Australia’s (RBA) decision to leave the cash rate unchanged at two percent, on the back of increases by some major banks.
Russell Zimmerman, ARA Executive Director, said the decision to leave rates on hold may come at the cost of much-needed Christmas spending for retailers, and comes at a time when mortgagees are under increased pressure following the rise in interest rates by some of the major banks.
“The ARA has been calling for a reduction in interest rates for some time, and we are disappointed that this has fallen on deaf ears,” said Mr Zimmerman.
“The ARA hopes that this does not lead to a restriction by consumers on Christmas purchases, which is the retail sector’s peak trading period. For Christmas spending to remain buoyant and top Christmas 2014’s figure of 42.5 billion, we need for consumer confidence to remain high.
“An interest rate cut would have provided consumers with more discretionary dollars in their pockets and higher confidence, which generally leads to a greater willingness to spend,” he said.
“With one more meeting of the RBA before the end of calendar 2015, the ARA will be hoping for a last minute interest rate reprieve in December.”
About the Australian Retailers Association:
Founded in 1903, the Australian Retailers Association (ARA) is the retail industry’s peak representative body representing Australia’s $284 billion sector, which employs more than 1.2 million people. The ARA works to ensure retail success by informing, protecting, advocating, educating and saving money for its 5,000 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.