The Reserve Bank’s decision to lift interest rates by 25 basis points just before Christmas will eat away at consumer confidence at the most crucial time for retailers, the Australian National Retailers Association said today.
The Reserve Bank yesterday lifted official interest rates for the third consecutive month to 3.75 percent.
“This is the first time in six years the Reserve Bank has lifted rates just before Christmas,” ANRA CEO Margy Osmond said.
“It’s disappointing the Reserve Bank didn’t wait until after the crucial Christmas period before deciding to raise rates again…the retail sector is still on unsteady ground and we would have preferred if the RBA left rates on hold until the New Year,” she added.
ABS retail figures for October are due out today.