Retailers question whether steady cash rate is enough to support growthBY Australian Retailers Association
The Reserve Bank of Australia’s (RBA) decision to keep the cash rate on hold today at 2.25 percent will support the retail industry for the time being but additional cuts are likely to be necessary.
The Australian Retailers Association (ARA) Executive Director Russell Zimmerman said the current period of stable interest rates is a positive sign for both business and consumers.
“While the stable cash rate has positively impacted consumer spending, both the Federal Government and RBA must now do all that they can to ensure that retail trade is fully supported.
“Unfortunately, we have seen some concerning data lately including low wages growth and a weak international environment which has left consumers and businesses feeling a little nervous. The ARA therefore encourages the government to prioritise real productive reforms and for the RBA to consider further rate cuts next month to maintain consumer confidence,” Mr Zimmerman said.
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Australian Retailers Association
Founded in 1903, the Australian Retailers Association (ARA) is Australia’s largest retail association representing Australia’s $310 billion sector, which employs more than 1.2 million people. As the retail industry’s peak representative body, the ARA works to ensure retail success by informing, protecting, advocating, educating and saving money for its 7,500 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.