Retailers have let out another sigh of relief after the Reserve Bank (RBA) has decided to hold interest rates at 4.75 per cent.
Both the National Retail Association (NRA) and the Australian Retailers Association (ARA) have described the news as an extra break the sector needs to continue the recovery after a soft couple of years and a disastrous few months.
NRA executive director Gary Black said retailers had been looking for favourable news to help them secure their business futures and continue creating employment opportunities.
“Across Australia, retailers will be looking at today’s decision as a turning point from the gloom of recent months,” he said.
“Hopefully it will give consumers the certainty they need to make major purchasing decisions, which in turn will flow through to better trading conditions.”
Similarly, ARA executive director Russell Zimmerman said it has been an anxious wait for retailers given the RBA has had to delicately balance factors such as inflation, consumer sentiment and booming sectors of the world economy such as mining within a two speed economy.
Consumer confidence is at an all time low with consumers too spooked to spend. This has left the retail sector unable to post any healthy growth and looking seriously at their staffing levels.
“Not only will retailers breathe a sigh of relief at today’s rate hold decision; it might also mean the difference between keeping employees on the shop floor instead of having to review rosters and staffing levels.”