"The RBA's decision today shows impatience and a total disregard for retail trade as a key economic indicator," Ms Cromarty said.

"Disappointing retail trade clearly indicates consumers can't cope with a bombardment of interest rate rises - they need time to properly manage increases to their mortgages without pulling back so much on their spending that retailers and retail workers suffer.

"It is certainly not 'business as usual' for retailers at the moment. Retail sales have been patchy for over a year now and a heavy handed and impatient approach to rate rises from the RBA will stall any further recovery in the sector, drying up any funds that are flowing from retail through the rest of the economy.

"Homeowners are struggling to deal with interest rate rises and the Reserve Bank must be mindful of clear signs that consumers are already tightening their belts and limiting their discretionary spend to small comforts like a cheap lunch from a nearby cafe.

"Retailers are Australia's largest employers, and while they struggle with limited access to affordable finance as well as wage bill pressures as a result of the modern award, they must have incentive to hold onto staff. Taking cash away from consumers after over a year of patchy retail sales doesn't encourage employment in the sector," Ms Cromarty said.

For over 105 years, the Australian Retailers Association (ARA) has been the peak industry body in Australia's $292billion retail sector which employs over 1.5 million people. As an incorporated employer body under the Workplace Relations Act and with a range of member services including business consulting, policy development, advocacy and education, the ARA promotes and protects over 5000 independent and national retailers throughout Australia.

Visit www.retail.org.au or call 1300 368 041.