The National Retail Association said the Reserve Bank Board’s decision to leave the cash rate unchanged at 2.25 per cent could be a boost for consumer confidence.
NRA Chief Executive Officer Trevor Evans said the decision could be viewed as a sign of stability.
“Generally, retailers would welcome an interest rate cut, but when rates get as low as they are at the moment it can be a double-edged sword by highlighting doubts around economic momentum and job security,” Mr Evans said.
“Over the last month we have seen an increase in consumer disposable income, through lower interest rates and cheaper fuel, which should help to boost the retail sector.
“However, while the cash rate has been held at 2.25 per cent, the Government should continue to pay close attention to essential policy settings that will promote business certainty and allow businesses to get on with creating employment and economic prosperity.”
The NRA is Australia’s largest and most diverse retail industry organisation, and has been representing the interests of the retail, fast food and broader service sector for almost 100 years.
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