The Reserve Bank of Australia (RBA)’s decision to further cut the cash rate by .75 percentage points is great news for consumers who need cash in their pockets and confidence to spend responsibly this Christmas, said ARA executive director Richard Evans.
“The RBA’s decision to cut interest rates yet again indicates our leading financial regulators are listening to retailers hard hit by months of reduced consumer demand. Hopefully this will help turn consumer confidence around and start the upwards trend for retail spending after successive months of stagnant and declining growth.
Evans said consumers have the economy in their hands at the moment. The RBA has cut interest rates over three consecutive months and the Rudd Government’s $10.4 billion stimulus package is putting cash back into consumers’ pockets. But now it’s up to consumers to re-enter the marketplace, spend responsibly and allow funds to flow through the economy.
“This is good news for consumers struggling with limited discretionary spend and great news for retailers fraught with the lowest consumer sentiment since 1992. We are optimistic this decision will change conditions for retailers in time for the upcoming Christmas season.
Evans put the pressure back onto the consumers saying that they need to start spending again to save their own jobs.
“We have a fundamentally strong economy and if consumers don’t respond to this good news they are putting their jobs and therefore their livelihood at risk. The RBA has done its job. The Rudd Government has done its job. Now it’s up to consumers to do their job – to save their jobs,” said Evans.