ID :
187034
Tue, 06/07/2011 - 15:04
Auther :
Shortlink :
https://www.oananews.org//node/187034
The shortlink copeid
Retailers applaud stable interest rates
SYDNEY, JUNE 07 (AAP) The Reserve Bank's decision to hold cash rates helps retailers struggling with subdued trading and online overseas shopping, a lobby group says.
Mortgage holders can breathe easy for another month after the official cash rate was kept at 4.75 per cent on Tuesday.
National Retail Association executive director Gary Black said it had taken the sector almost six months to regain momentum following the rise in November last year.
"Retail has been trading in what are effectively recessionary conditions for over 12 months now," he said in a statement.
"We continue to face heavy competition from overseas online outlets."
Mr Black said an interest rate hike would have hurt struggling sectors.
"We know that consumer spending is down, and household savings are at their highest levels since 1985," he said.
"An interest rate increase in the future would hit hardest those sectors that are already suffering, while doing little to cool the overheating mining sector."
Mortgage holders can breathe easy for another month after the official cash rate was kept at 4.75 per cent on Tuesday.
National Retail Association executive director Gary Black said it had taken the sector almost six months to regain momentum following the rise in November last year.
"Retail has been trading in what are effectively recessionary conditions for over 12 months now," he said in a statement.
"We continue to face heavy competition from overseas online outlets."
Mr Black said an interest rate hike would have hurt struggling sectors.
"We know that consumer spending is down, and household savings are at their highest levels since 1985," he said.
"An interest rate increase in the future would hit hardest those sectors that are already suffering, while doing little to cool the overheating mining sector."
