Retailers rejoice rate cut | IR News

Retailers rejoice rate cut

Posted Date: 07/12/2011

By Inside Retail

The Australian Retailers Association (ARA) says retailers are joyous over the Reserve Bank of Australia’s (RBA) timely decision to reduce the cash rate to 4.25 per cent ahead of Christmas, giving hope that reduced mortgage stress would save the silly season.

ARA executive director, Russell Zimmerman, said if banks passed on the reduction promptly it was sure to give retailers a much needed boost as consumers turned their thoughts to what would be under the Christmas tree this season.

“Retailers’ tills will be ringing in the silly season as the RBA’s timely decision means the third of consumers who are starting their shopping during this first two weeks of December will have some extra spending confidence.

“The RBA has done it's bit, showing Christmas spirit at retailers’ hour of need but it’s now up to the banks to show the same spirit and pass on the rate cut to both businesses and consumers.

“Retailers have been facing tough trading conditions over the past eighteen months, and the rate cut will give them hope the silly season is ‘in the bag’ and they will finally be able to post some growth over Christmas.

“Consumer confidence can only be maintained if consumers have cash in their pockets, which means ARA is urging government to do its bit not to increase the cost of living through additional taxes and charges as federal and state budget considerations commence in the new year,” Zimmerman said. “It’s clear the RBA has listened to those at the coal face of the industry and given some much needed relief to consumers under stress as a result of their mortgage as well as other taxes and a soaring cost of living.

“At least in the short term consumers are free to think about what Santa will bring this year,” Zimmerman said.

Keywords: ARA , zimmerman, rate cut, RBA

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