RETAILERS RECEIVE NO REPRIEVE AS CASH-RATE HOLDS

RETAILERS RECEIVE NO REPRIEVE AS CASH-RATE HOLDS

STRUGGLING retailers have missed out on a much-needed shot in the arm as the official cash-rate remained unchanged.

The Reserve Bank of Australia’s (RBA) Board of directors left the cash rate at 3.25 per cent citing significantly lower commodity prices and a moderate drop in trade activity.

The Australian Retailers Association (ARA) is disappointed with the decision as it had wagered that the RBA would “pump much-needed cash into the struggling economy”.

Executive director Russell Zimmerman (pictured) believes the RBA should reconsider.

“The government’s tight fiscal policy has taken from the pockets of businesses through increased costs around tax collection, which means the RBA will have to give back by cutting rates if consumers are to have any spare cash to spend in retail over the festive season,” he says.

However, the latest consumer sentiment survey from Lonergan Research suggests otherwise. The study found that less than a quarter of shoppers would use a pre-Christmas rate cut to increase discretionary spending.

Some 77 per cent of respondents claimed they would not spend more, even if the RBA reduced interest rates.

Enjoyed this article?

Don't miss out on the knowledge and insights to be gained from our daily news and features.

Subscribe today to unlock unlimited access to in-depth business coverage, expert analysis, and exclusive content across all devices.

Support independent journalism and stay informed with stories that matter to you.

Subscribe now and get 50% off your first year!

Four time-saving tips for automating your investment portfolio
Partner Content
In today's fast-paced investment landscape, time is a valuable commodity. Fortunately, w...
Etoro
Advertisement

Related Stories

Owner of Houston’s Farm, Sunfresh and Gourmet Selections enters administration

Owner of Houston’s Farm, Sunfresh and Gourmet Selections enters administration

A national vertically integrated farming and ready-made salad manuf...

Body Fit Training sets sights on Scandinavia with master franchise agreement

Body Fit Training sets sights on Scandinavia with master franchise agreement

After opening up 42 new studios globally in 2024 to date, Melbourne...

AI is not a magic wand – it has built-in problems that are difficult to fix and can be dangerous

AI is not a magic wand – it has built-in problems that are difficult to fix and can be dangerous

By now, all of us have heard and read a lot about artificial intell...

Former AFL boss Gillon McLachlan to lead Tabcorp as new CEO

Former AFL boss Gillon McLachlan to lead Tabcorp as new CEO

After speculation was quashed that he would be joining Racing Victo...