RBA’S STEADY HAND APPLAUDED

Written on the 4 March 2011

RBA’S STEADY HAND APPLAUDED

THE Reserve Bank of Australia’s (RBA) decision to hold rates showed a steady hand as consumers cut spending and deal with an increased cost of living, according to the retail industry body.

Following the decision to hold rates this quarter, the Australian Retailers Association is urging the RBA to keep interest rates fixed until at least the third quarter.

Executive director Russell Zimmerman says sluggish January retail figures showed a year-on-year decline for key sectors including department stores, household goods and apparel retailers.

“(The) interest rate hold was the right decision to ensure retailers are not put under further pressure as frugal consumer behaviour continues to produce poor trading conditions,” says Zimmerman.

“Retail year-on-year growth is well below the current rate of inflation at 1.8 percent and retailers aren’t expecting any significant boosts in the coming months.

“While increases to utilities, essential foods and other living costs continue to rise, consumer discretionary spend tightens. Add to this signs of a new flood levy and carbon tax on the horizon and you’ve got a recipe for disaster for retailers who are desperately trying to get consumers back in the door.

“Retailers are calling on the RBA to continue their steady hand and keep rates on hold until at least the third quarter while both consumers and retailers get back on their feet.”

Zimmerman says recent studies indicate 50 percent of frugal consumers plan on spending less in 2011, largely due to anticipated flood levies.


Latest News

BELLAMY'S FINDS EXPORTING BABY FORMULA INTO CHINA IS NO CHILD'S PLAY

BELLAMY'S (ASX: BAL) shares have suffered a 40 per cent drop in value today after the company hit a regulatory...

BRISBANE WATCH BRAND ADINA AIMS FOR ICONIC

ADINA watches is at a turning point in its history, 45 years after being founded by Robert 'Bob' Menzies i...

WHY YOU SHOULD CARE FOR YOUR BODY AS MUCH AS YOUR BUSINESS

ENTREPRENEURSHIP is a busy business. It can be all-consuming, but it is important not to neglect your health Y...

BULLETS BACK IN THE BUSINESS COMMUNITY

ALTHOUGH new to the current south-east Queensland sporting landscape, the Brisbane Bullets have a rich basketball ...

Related News

JB HI-FI IS THE GOOD GUY IN $870 MILLION ACQUISITION

ELECTRONICS giant JB Hi-Fi has formally completed its $870 million acquisition of home appliance chain The Good Gu...

ACCC ACTS AGAINST MERITON'S RIGGED REVIEWS

MERITON Property Services is under fire from Australia's main consumer watchdog, after it allegedly engaged in mi...

ACCC FIRES WARNING SHOT TO IVF PROVIDERS

IVF clinics have been put on notice by consumer watchdog, the Australian Competition and Consumer Commission (ACCC...

BIG W CEO QUITS AFTER 11 MONTHS

SALLY MacDonald has resigned as chief executive of BIG W ending her tenure at the helm of the struggling discount ...

Contact us

Email News Update Sign Up Contact Details

Subscribe to our mailing list

* indicates required
Email Format

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter