The National Retail Association has today welcomed the Reserve bank of Australia’s (RBA’s) decision to drop the Official Cash Rate by a quarter of a per cent to an historic low of 1.75 per cent – the first movement in 12 months.
NRA Industry Research and Data Analyst Cameron Meiklejohn said a lower cash rate will generate more momentum in the retail sector.
“We have seen reasonably flat consumer confidence across the past six months, and below average growth in retail sales, so we certainly hope that the cut in interest rates will have the desired effect of improved borrowing and spending across the economy,” Mr Meiklejohn said.
“Consumer confidence has been tested in recent months with volatility in international financial markets, a decline in the Australian share market, and a cooling in the residential property market all contributing to greater caution in consumer spending.”
“It is hoped that this decision will ease some of this caution and concern, and generate greater momentum across the economy. When retail is flourishing, it drives productivity and jobs growth right across the country,” he said.