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Rate rise concerning for consumers: Wesfarmers

Rate rise concerning for consumers: Wesfarmers
Wesfarmers chief Richard Goyder says he is concerned about the impact another potential interest rate rise could have on consumer confidence and the still fragile economy.
Goyder told reporters after the Coles owner’s annual general meeting in Perth on Tuesday that the last two interest rate rises did not appear to have damaged consumer sentiment, but another hike in December could do so.
“I’ve been slightly unhappy with the two interest rate increases we’ve had already,” he said.
‘I understand the reasoning of the Reserve Bank in doing it … but I think consumer sentiment is fragile and increasing interest rates does potentially reduce people’s take home income,” he said.
Goyder said that while Australia had come through the global financial crisis remarkably well, caution is still needed.
“It would be wrong for us to think that this was just a small blip and that we will return to the heady days which preceded the global financial crisis,” he said.
“Our sense is that while confidence has returned domestically, it is still fragile, and I for one am concerned that increasing interest rates, coupled with people working less hours, may impede the pace of recovery.”

Wesfarmers chief Richard Goyder says he is concerned about the impact another potential interest rate rise could have on consumer confidence and the still fragile economy.

Goyder told reporters on Tuesday that the last two interest rate rises did not appear to have damaged consumer sentiment all that much, but another hike in December could.

“I’ve been slightly unhappy with the two interest rate increases we’ve had already,” he said.

“I understand the reasoning of the Reserve Bank in doing it … but I think consumer sentiment is fragile and increasing interest rates does potentially reduce people’s take home income,” he added.

Goyder said that while Australia had come through the global financial crisis remarkably well, caution was still needed.

“It would be wrong for us to think that this was just a small blip and that we will return to the heady days which preceded the global financial crisis,” he said.

“Our sense is that while confidence has returned domestically, it is still fragile, and I for one am concerned that increasing interest rates, coupled with people working less hours, may impede the pace of recovery.”

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Jessica Stanic

Jessica Stanic

Jessica has a background in both marketing and journalism and is dedicated to making the website the leading online resource for small to medium businesses with ambitions to grow.

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