Rumours were flying that no one should bank on a rate change this month and they were right. The Reserve Bank of Australia has decided to leave the cash rate unchanged at 2.5 per cent.

According to the RBA governor Glenn Stevens, the current rate continues to remain appropriate for the economic environment and the RBA will reassess later on.

“The easing in monetary policy since late 2011 has supported interest-sensitive spending and asset values,” he said.

“The full effects of these decisions are still coming through, and will be for a while yet.”

“The pace of borrowing has remained relatively subdued to date, though recently there have been signs of increased demand for finance by households. There is also continuing evidence of a shift in savers' behaviour in response to declining returns on low-risk assets.”

National Retailer Association CEO Trevor Evans agrees believing the pressure is now up to the federal government to drive growth in the sector.

“The RBA can’t cut rates much further so the retail sector and the wider economy is really relying on the Abbott government to lock in the prospects for future growth and more jobs in the important retail and services sector,” he said.

Meanwhile, Margy Osmond from the Australian National Retailers Association (ANRA) argues there’s still room for improvement, particularly in the lead up to Christmas.

"With less than three months out from Christmas retailers were hoping the RBA would recognise the importance of avoiding another disappointing Christmas by reducing the cash rate sooner rather than later,” she said.

"The pulse of the retail sector kicked in August, after flat-lining over the previous three months and retailers were looking for support that might encourage consumers to feel confident to go out and buy those new summer fashions and extra Christmas gifts.

"The RBA’s statement acknowledged that Inflation has been consistent with the medium-term target and that a lower level of the currency than seen at present would assist in rebalancing growth in the economy – both supportive factors for a rate cut.

"We would urge the RBA to consider reducing the cash rate further before the end of the year to help support important non-mining sectors and encourage business and consumer confidence more generally.”