Interest rates remain stagnant - ARA urges RBA to cut rates next month given imminent Federal Budget cuts

PEAK retail industry body the Australian Retailers Association (ARA) said the Reserve Bank of Australia’s (RBA) decision to keep the cash rate at 2.5 percent has caused concern for both retailers and consumers.

ARA Executive Director Russell Zimmerman said the RBA’s decision to keep the cash rate on hold for the eighth consecutive month has concerned retailers and consumers, who are nervous about the Federal Budget announcement next Tuesday.

“While today’s result was expected, we urge the RBA to consider lowering interest rates in June to provide some relief to struggling Australians. We are aware that the Federal Budget announcement will likely result in budget cuts, affecting both retailers and consumers.

“Although retail trade started off with a bang this year, unfortunately growth is not consistent and the SME sector is certainly still struggling. Interest rates must remain low to ensure that these retailers are able to cope,” 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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