All retailers wanted for Christmas was an interest rate cut – hope now lies with the RBA to reassess

Peak retail industry body the Australian Retailers Association (ARA) said the decision made by the Reserve Bank of Australia (RBA) today to leave the cash rate unchanged yet again at 2.5 percent has left retailers anxious that shoppers may think twice about increasing their Christmas spending.

ARA Executive Director Russell Zimmerman said although Christmas sales are currently going well, with retailers expected to pocket $42.2 billion from November 15 – Dec 25, business owners were disappointed that today’s rate stay may result in shoppers leaving gift purchases to the last minute.

“December is a crucial month for retailers who are counting on Christmas sales to get back on track financially. All we can do now is look forward to the Board reassessing the outlook in January and hope that policy is adjusted as needed. The ARA believes that the current cash rate of 2.5 percent has room for further adjustment.

“We know that the post-election boost for retail and consumer confidence has eased off somewhat, meaning the Abbott Government must rapidly implement its program of tax cuts and economic reform.

“The ARA is continuing to work alongside the government to rapidly implement its program of tax cuts and economic reform,” Mr Zimmerman said.

Since 1903, the Australian Retailers Association (ARA) has been the peak industry body representing Australia’s $258 billion retail sector, which employs over 1.2 million people. The ARA ensures retail success by informing, protecting, advocating, educating and saving money for its 5,000 independent and national retail members throughout Australia.

Visit www.retail.org.au or call 1300 368 041.

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