Rejoice that nothing stopped the ARA | IR News

Rejoice that nothing stopped the ARA

Posted Date: 01/11/2011

By Inside Retail

Australian Retailers Association chief Russell Zimmerman is a relieved man.

He says retailers are rejoicing after the RBA reduced the cash rate by 0.25 per cent in time for the most important retail trading period of the year.

“The race that stops the nation didn’t stop the RBA from bringing some Christmas cheer to retailers, who now have some well- deserved and long- awaited hope over the festive season.

“The retail industry may have been saved in the nick of time from a disastrous Christmas, and can now be more confident Santa is coming to town and trade will be enjoying at least a short term boost over the festive season.

“The RBA has made consumer relief from mortgage stress and the soaring cost of living a safe bet, and this will hopefully resonate through the sector, meaning positive things for growth and employment," said Zimmerman.

“While retailers still have a long road ahead towards long term economic recovery, this will at least be a short term boost for retailers who were bearing the brunt of the pressures on consumers brought about by mortgage stress, the soaring cost of living and having to negotiate new taxes into their household budgets.

“Hopefully we will see some more consumers walk through doors and populate their trees in readiness for Christmas.

“The RBA has made the right decision and got the balance right in terms of the economic impact of the cash rate at its current levels,”

“It’s now up to the banks to pass the interest rate cut on in full to businesses and consumers,” Zimmerman said.

Keywords: ARA, R4eserve Bank, interest rates

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