0

Shopping cart

Reserve Bank of Australia steps in to ‘save the furniture’ in the face of a weak economy

Share on linkedin
Share on facebook
Share on twitter
Share on email

Peak retail industry body the Australian Retailers Association (ARA) said the decision made by the Reserve Bank of Australia (RBA) today to lower the cash rate by 25 basis points to 2.5 percent is a welcome change for struggling retailers.

ARA Executive Director Russell Zimmerman said the RBA have stepped in to ‘save the furniture’ with the decision to lower interest rates, especially in the face of a lack of economic leadership and an upcoming election campaign.

“The RBA have provided some relief to Australian retailers, although it is concerning that this cut has come on the back of flat retail sales, predictions of rising unemployment and falling consumer and business confidence.

“The ARA are now calling on the banks to pass this rate cut in full to consumers and businesses.

“What Australia needs now that we are in an election are clear commitments from both political parties regarding business growth, flexibility and lower taxes along with genuine tax and workplace reform.

“While rate cut decisions are no silver bullet for retail sales, the sector will at least be hopeful some of the financial pressure on shoppers eases, and this will make way for growth and employment within the $258 billion industry.

“Retailers are optimistic that this interest cut may encourage consumers to let go of their purse strings somewhat, especially as we enter the warmer spring and summer months and the lead up to the Christmas period,” Mr Zimmerman said.

Share on linkedin
Share on facebook
Share on twitter
Share on email

Subscribe

The Australian Business Executive (The ABE) provides an in-depth view of business and economic development issues taking place across the country. Featuring interviews with top executives, government policy makers and prominent industry bodies The ABE examines the news beyond the headlines to uncover the drivers of local, state, and national affairs.

All copy appearing in The Australian Business Executive is copyrighted. Reproduction in whole or part is not permitted without written permission. Any financial advice published in The Australian Business Executive or on TheABE.com.au has been prepared without taking in to account the objectives, financial situation or needs of any reader. Neither The Australian Business Executive nor the publisher nor any of its employees hold any responsibility for any losses and or injury incurred (if any) by acting on information provided in this magazine. All opinions expressed are held solely by the contributors and are not endorsed by The Australian Business Executive or TheABE.com.au.

All reasonable care is taken to ensure truth and accuracy, but neither the editor nor the publisher can be held responsible for errors or omissions in articles, advertising, photographs or illustrations. Unsolicited manuscripts are welcome but cannot be returned without a stamped, self-addressed envelope. The publisher is not responsible for material submitted for consideration. The ABE is published by Romulus Rising Pty Ltd, ABN: 77 601 723 111.

© 2019 - The Australian Business Executive. All rights reserved.