Rate stay: RBA must work with government to support small business finance availability

PEAK retail industry body the Australian Retailers Association (ARA) is concerned for the future of small business after the Reserve Bank of Australia (RBA) left the current cash rate of 2.5 percent unchanged today.

ARA Executive Director Russell Zimmerman said it continues to be extremely difficult for businesses, especially small to medium businesses, to expand and contribute their full potential to the Australian economy without sufficient financial support in the post GFC finance world.

“It is crucial that the RBA and government work together to find a way of supporting small business finance availability. Without access to much-needed finance, the retail sector will not be able to move forward and develop.

“The ARA is also worried that a rate stay at this time of year may reverse the positive results that the industry has worked hard to achieve over the last few months, particularly during the booming Christmas period.

“We were also hoping for a reduction in the current cash rate in order stimulate employment, particularly youth employment which has recently hit an 11-year low. The ARA is strongly concerned for the future of Australian retail workers and a reduction today would have certainly supported the retail industry and encouraged employment opportunities for the leaders of tomorrow.

“While business needs support it is also important for consumers to continue to have relief on their stretched budgets to allow them to support the retail economy.

“The ARA believes the current cash rate has room for further adjustment and we have every hope that with the RBA’s support, the retail sector will experience a healthier and more successful year compared to the last,” Mr Zimmerman said.

Since 1903, the Australian Retailers Association (ARA) has been the peak industry body representing Australia’s $265 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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