Australia’s largest and most representative retail industry organisation, the National Retail Association, has welcomed today’s cut in official interest rates saying it will help fire consumer confidence and safeguard jobs.
NRA Chief Executive Officer Dominique Lamb said the RBA’s decision to cut rates by 25 basis points would help achieve the Bank’s goal of supporting domestic demand, particularly in the retail sector.
“We are mindful that an interest rates cut can have be double-edged sword, given that the RBA has clearly indicated it is concerned about some slowing in the economy overall,” Ms Lamb said.
“However, lower borrowing rates will flow through to more money in the pockets of consumers, giving them greater discretionary spending power.”
“This in turn will boost the retail sector, which is one of the nation’s largest employers – particularly for lower-skilled and part time workers.”
“There is very little lead time required for retailers to increase staff hours or their number of employees when they are seeing additional spending by consumers.”
“So a jump in consumer demand from a rates cut can lead very quickly to increased activity in the labour market.”
“We welcome the RBA’s decision, and we call on all lending institutions to now pass the benefits along to their customers – both for home loans and for credit cards.”
The National Retail Association is Australia’s largest and most representative retail industry association. It has been serving businesses in the retail and fast food sectors for close to 100 years.
Dominique Lamb is available for media interviews. Please call the NRA’s media unit on (07) 3240 0163 or 0467 792 013.