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RBA gives consumers cash for confidence this Christmas - retailers hopeful rate cut will flow through economy

Peak retail industry body the Australian Retailers Association (ARA) has applauded the Reserve Bank of Australia’s (RBA) decision to further cut the cash rate by .75 percentage points today.

ARA Executive Director Richard Evans said the third cut in three months is great news for consumers who need cash in their pockets and confidence to spend responsibly this Christmas.

 "The RBA's decision today to cut interest rates yet again indicates our leading financial regulators are listening to retailers hard hit by months of reduced consumer demand.

"Hopefully this will help turn consumer confidence around and start the upwards trend for retail spending after successive months of stagnant and declining growth.

"Consumers have the economy in their hands at the moment. The RBA has cut interest rates over three consecutive months and the Rudd Government's $10.4 billion stimulus package is putting cash back into consumer's pockets. But now it's up to consumers to re-enter the marketplace, spend responsibly and allow funds to flow through the economy. 

 "This is good news for consumers struggling with limited discretionary spend and great news for retailers fraught with the lowest consumer sentiment since 1992.  We are optimistic today's decision will change conditions for retailers in time for the upcoming Christmas season.

"We have a fundamentally strong economy and if consumers don't respond to this good news they are putting their jobs and therefore their livelihood at risk. The RBA has done its job. The Rudd Government has done its job. Now it's up to consumers to do their job - to save their jobs," Evans said. 

For over 104 years, the Australian Retailers Association (ARA) has been the peak industry body in Australia's $292 billion retail sector which employs over 1.2 million people. As an incorporated employer body under the Workplace Relations Act and with a range of member services including business consulting, policy development, advocacy and education, the ARA promotes and protects over 5000 independent and national retailers throughout Australia. Visit www.retail.org.au or call 1300 368 041.

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