The Reserve Bank of Australia’s (RBA) decision to keep the cash rate on hold today at 2.25 percent will support the retail industry for the time being but additional cuts are likely to be necessary.
The Australian Retailers Association (ARA) Executive Director Russell Zimmerman said the current period of stable interest rates is a positive sign for both business and consumers.
“While the stable cash rate has positively impacted consumer spending, both the Federal Government and RBA must now do all that they can to ensure that retail trade is fully supported.
“Unfortunately, we have seen some concerning data lately including low wages growth and a weak international environment which has left consumers and businesses feeling a little nervous. The ARA therefore encourages the government to prioritise real productive reforms and for the RBA to consider further rate cuts next month to maintain consumer confidence,” Mr Zimmerman said.