News Column

RBA's Decision to Hold Interest Rate Adamant at 2.5 does Little to Ease Retail Struggles

July 1, 2014

MELBOURNE, Australia, July 1 -- The Australian Retailers Association issued the following news release:

Peak retail industry body the Australian Retailers Association (ARA) said the Reserve Bank of Australia's (RBA) decision to keep the cash rate on hold at 2.5 percent for the ninth consecutive month, did little to ease retail struggles after last month's sluggish retail trade figures and low consumer confidence.

ARA Executive Director Russell Zimmerman said today's decision while expected, left retailers disappointed yet again.

"Retailers have been doing it tough after concerns raised following the Federal Budget announcement and after experiencing unexpected warm weather affecting retail trade, retailers need to see some form of light at the end of the tunnel.

"What we need is steady Government support to give retailers a positive boost into the new financial year and as such, the ARA urges the RBA to cut interest rates in August given the struggles retailers have been enduring.

"From the concerns raised following the Federal Budget to low consumer confidence due to unexpected warm weather confirmed through last month's retail trade figures, retailers are feeling the pressure to compete with the flash winter weather.

"Retailers are running out of time with winter stock and flash winter weather will leave retailers anxious. It will be interesting to see how retail trade figures released this week will confirm the hiccups in consumer confidence.

"Interest rates must be lowered to give retailers much deserved support and especially the SME sector," Mr Zimmerman said.

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Source: Targeted News Service

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