Retailers said the Reserve Bank of Australia’s decision to slash the cash rate by 25 basis points to 3.85 per cent will help support the recovery of the industry.
“While today’s decision has been on the cards, we hope it nudges business and consumer confidence in the right direction,” said Chris Rodwell, CEO of the Australian Retailers Association (ARA).
“A lower cash rate should have a positive flow-on effect to retail businesses, many of which are highly dependent on discretionary spending. That’s why we urge the RBA to stay vigilant to opportunities to provide further relief.”
Rodwell noted that retailers have been facing pressures in the past five years amid higher business costs and lower consumer spending.
“Interest rates are one part of the equation. We now need to see some policy changes that will give retail the license to grow,” Rodwell said.
“The volatility resulting from the current trade wars and ultra low-cost global competitors is also impacting Australian retail’s share of wallet. While this is a very resilient sector, retailers can’t do it alone and we need the Federal Government to lean in to support the recovery of this vital sector.”