RETAILERS RECEIVE NO REPRIEVE AS CASH-RATE HOLDS

Written on the 7 November 2012

RETAILERS RECEIVE NO REPRIEVE AS CASH-RATE HOLDS

STRUGGLING retailers have missed out on a much-needed shot in the arm as the official cash-rate remained unchanged.

The Reserve Bank of Australia’s (RBA) Board of directors left the cash rate at 3.25 per cent citing significantly lower commodity prices and a moderate drop in trade activity.

The Australian Retailers Association (ARA) is disappointed with the decision as it had wagered that the RBA would “pump much-needed cash into the struggling economy”.

Executive director Russell Zimmerman (pictured) believes the RBA should reconsider.

“The government’s tight fiscal policy has taken from the pockets of businesses through increased costs around tax collection, which means the RBA will have to give back by cutting rates if consumers are to have any spare cash to spend in retail over the festive season,” he says.

However, the latest consumer sentiment survey from Lonergan Research suggests otherwise. The study found that less than a quarter of shoppers would use a pre-Christmas rate cut to increase discretionary spending.

Some 77 per cent of respondents claimed they would not spend more, even if the RBA reduced interest rates.


Latest News

1700 BRISBANE APARTMENTS NOW MANAGED BY FORTUNE 500 COMPANY JLL

MULTINATIONAL and Fortune 500 company JLL (NYSE: JLL) has expanded its Australian dominance in the property managemen...

HARVEY NORMAN HITS OUT AT 'FALSE NEWS' OF ASIC INVESTIGATION

RETAIL giant Harvey Norman (ASX: HVN) has vehemently rejected reports its accounts are under investigation by ASIC, s...

RARE GOOD NEWS FOR SLATER AND GORDON AS ASIC CLOSES INVESTIGATION

ASIC has cleared Slater and Gordon of deliberately falsifying its accounts after a three-month investigation.

It s...

Q & A WITH FACEBOOK GURU ANDY MCKEON AS HE JOINS AUSTRALIAN SOFTWARE COMPANY LIVETILES

HE was creative director at Apple under the legendary Steve Jobs, and is now a senior Facebook executive. In his n...

Related News

RAY OF HOPE FOR SLATER AND GORDON AS LENDERS STEP IN

EMBATTLED law firm Slater and Gordon (ASX: SGH) has announced to the ASX that it has launched confidential discussion...

SPROUTX PROVIDES THE SEED FOR AGTECH STARTUPS

AGTECH innovation fund SproutX has opened applications for its first accelerator round, backed by $10 million from...

GAS PRICES MAY FORCE BRICKWORKS TO TAKE MANUFACTURING OVERSEAS

BRICKWORKS Limited (ASX:BKW) chairman Robert Millner says soaring energy prices may force the company to turn to offs...

CHINA CONTINUES TO COLLECT AUSSIE PROPERTY ASSETS

CHINESE coin continues to dominate Australia's offshore real estate investment market, accounting for almost h...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter