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 in the near future.
The Australian Retailers Association (ARA) Executive Director Russell Zimmerman said there is a need to boost consumer confidence in light of low wages growth and a weak international environment which has left consumers and businesses feeling uneasy.
“At today’s meeting the RBA Board judged it appropriate to hold interest rates for now, however they did mention that further easing of policy may be needed over the period ahead.
“It is now up to both the RBA and the Federal Government to do all that they can to ensure that business is fully supported, especially as retailers are now starting to focus their attention on the upcoming Federal Budget and will be looking to ensure small business tax cuts are being delivered in order to boost their bottom lines.
“The ARA encourages the government to prioritise real productive reforms and for the RBA to consider further rate cuts next month to stimulate consumer confidence,” Mr Zimmerman said.