The Australian Retailers Association (ARA) has deplored the Reserve Bank of Australia's (RBA) decision to leave the cash rate unchanged at 2% following increases by major banks.
ARA executive director Russell Zimmerman said that the decision could negatively effect retailers and mortgagees ahead of the busy Christmas period.
“The ARA has been calling for a reduction in interest rates for some time, and we are disappointed that this has fallen on deaf ears.
“The ARA hopes that this does not lead to a restriction by consumers on Christmas purchases, which is the retail sector’s peak trading period.
“For Christmas spending to remain buoyant and top Christmas 2014’s figure of 42.5 billion, we need for consumer confidence to remain high.”
Zimmerman said the proposed interest rate cut could have elevate consumer confidence in the sector and lead to economic growth.
“An interest rate cut would have provided consumers with more discretionary dollars in their pockets and higher confidence, which generally leads to a greater willingness to spend.
“With one more meeting of the RBA before the end of calendar 2015, the ARA will be hoping for a last minute interest rate reprieve in December.”