RETAILERS RECEIVE NO REPRIEVE AS CASH-RATE STAYS ON HOLD

Written on the 7 November 2012

RETAILERS RECEIVE NO REPRIEVE AS CASH-RATE STAYS ON HOLD

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

VITA GROUP POSTS STEADY RESULTS DESPITE ROUGH YEAR

IT'S no secret Vita Group (ASX: VTG) has had a testing year, however the company has still managed to deliver ...

KOGAN BREAKS FORECASTS IN ITS FIRST YEAR OF PUBLICLY LISTED TRADE

RAISING the bar high in its first year as a publicly listed company, Kogan.com (ASX: KGN) has smashed its forecast...

CAMPLIFY MOTORS INTO THE UK MARKET

CARAVAN hire and RV sharing community Camplify has made its move in the European market, establishing its first op...

COCHLEAR R&D INVESTMENT DRIVES NEW PRODUCTS AND BOOSTS PROFIT AND REVENUE

COCHLEAR (ASX: COH) has boosted its 2017 full year net profit by 18 percent to $223.6 million and has forecast furthe...

Related News

WESFARMERS BOOKS BUMPER PROFIT BUT SUPERMARKET WAR HITS COLES' BOTTOM LINE

SUPERMARKET giant Coles has posted its biggest slide in earnings since it was acquired by Wesfarmers (ASX: WES) 10 ye...

ANALYSTS PREDICT WHAT AUSSIE LIVING IS LIKELY TO BECOME IN THE NEXT CENTURY

AS THE Australian population continues to grow, analysts are predicting what the country is likely to look like wi...

SEVEN WEST REPORTS MASSIVE LOSS AND CUTS CEO TIM WORNER'S PAY PACKET BY $450K

SEVEN West Media (ASX: SWM) has posted a full-year loss of $744.3 million and cut CEO Tim Worner's pay packet by ...

HOW MAKING MISTAKES AND PASSION SCORED WEIGHT LOSS PARTNERS A DEAL WITH SHARK TANK'S JANINE ALLIS

THEY partnered up to provide a scientific and targeted approach to dieting, and Kate Save and Geoff Draper cut Sha...

BOOK YOUR FUNCTION SPACE HERE

 

 

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter