Peak retail industry body, the Australian Retailers Association (ARA) said retailers who were relying on a strong trade during the holiday season were devastated by the Reserve Bank's decision raise interest rates to 4.75 percent today with only one month to go before Christmas.

ARA Executive Director Russell Zimmerman said retailers needed the RBA to continue its freeze on interest rate rises in the lead up to Christmas to give retailers a chance to recoup over a year of slow trade during the end-of-year holidays.

"History tells us that when consumers have to deal with increased mortgage repayments in the few months before Christmas it has disastrous impact on retail trade during the festive season.

 "The RBA's decision today is just history repeating itself. This time last year, the RBA ruined the chance of a strong Christmas with several rate rises leading into the holiday trade period.

"This is a heavy handed and unnecessary decision that could have been delayed especially considering the current low inflation rate and the strong Aussie dollar.

"Instead of listening to the pleas of retailers who are desperate for some strong trade during the Christmas period (the second half of November to 24 December) , the RBA is once again the Grinch who stole Christmas.

"Retailers are begging the RBA not to add insult to injury next month when shoppers will be in full swing with their Christmas shopping," Zimmerman said.

For over 105 years, the Australian Retailers Association (ARA) has been the peak industry body in Australia's $292 billion retail sector which employs over 1.2 million people. 

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