The Australian National Retailers Association (ANRA) has welcomed the Reserve Bank’s latest cut to interest rates, believing that it is a modest, but necessary step to sustain economic growth.
The retail body believes that while the cut of 25 basis points (a quarter of a percent) to take interest rates to an all-time low of 3 percent was necessary, a deeper cut of 0.5 percent would have been more effective.
However ANRA CEO Margy Osmond is happy with the decision.
“The conditions are right for an interest rate cut. Inflation is cooling and unemployment is rising. Growth forecasts for Australia and our trading partners are again being revised downwards.
“The prospect of lower interest rates gives families mortgage relief at a time when many are concerned about their job. Without falling interest rates, consumer confidence would be far worse.”
The ANRA has urged the banks to pass on the full rate cut to consumers.
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