ARA urges RBA to lower interest rates at its next meeting following sluggish retail trade results

 

PEAK retail industry body the Australian Retailers Association (ARA) said the Reserve Bank of Australia’s (RBA) decision to keep the cash rate oh hold at 2.5 percent for the eighth consecutive month, although expected, was disappointing for retailers.

ARA Executive Director Russell Zimmerman said  today’s decision does little to ease the concerns that were raised after the Federal Budget announcement – including the impact that increased taxes will have on consumer spending and confidence.

“What we need to see now is every effort made not to harm consumer confidence further with a clear long term plan from Government to support consumers through future tax cuts and short term support from agencies such as the RBA.

“The ARA urges the RBA to cut interest rates in July given the concerns raised following the Federal Budget. It is also obvious, after todays’ retail trade results, that retailers are suffering after experiencing unseasonabaly warm weather in April and May.

“It’s being felt across the industry, from those selling winter coats and boots, to kitchenware products, such as soup makers and crockpots, electric blankets and heaters. Even if we get a sharp cold spell, it is now getting almost too late to purchase winter products.

“Interest rates must be reduced in order to aid in the growth for retailers and especially the SME sector,” Mr Zimmerman said.

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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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