RBA HOLDS CASH RATE

THE RBA’s decision to keep the cash rate on hold after a ‘disastrous few months for the retail sector’ due to low consumer sentiment has been welcomed by retail industry body the Australian Retailers Association.

The Australian Retailers Association (ARA) executive director Russell Zimmerman says retailers will breathe a sigh of relief at the news.

He says it may mean the difference between keeping employees on the shop floor, instead of having to review rosters and staffing levels.

“Consumer confidence is at an all time low with consumers too spooked to spend – this has left the retail sector unable to post any healthy growth and looking seriously at their staffing levels,” says Zimmerman.

“Consumers are facing more pressure than ever on their household budgets and any more strain would have been detrimental as they struggle with the soaring cost of living and uncertainty around the flow on effects of the carbon tax.

“Retail trade figures due for release shortly are expected to show further signs of a struggling sector, which is dealing with consumers saving at unprecedented levels to make sure they can afford the necessities and deal with increased pressures as a result of yet another tax year.”