Peak retail industry body the Australian Retailers Association (ARA) said retailers were rejoicing after the RBA reduced the cash rate by 0.25 percent in time for the most important retail trading period of the year.

ARA Executive Director Russell Zimmerman said, “The race that stops the nation didn’t stop the RBA from bringing some Christmas cheer to retailers, who now have some well-deserved and long-awaited hope over the festive season.

“The retail industry may have been saved in the nick of time from a disastrous Christmas, and can now be more confident Santa is coming to town and trade will be enjoying at least a short term boost over the festive season.

“The RBA has made consumer relief from mortgage stress and the soaring cost of living a safe bet, and this will hopefully resonate through the sector, meaning positive things for growth and employment.

“While retailers still have a long road ahead towards long term economic recovery, this will at least be a short term boost for retailers who were bearing the brunt of the pressures on consumers brought about by mortgage stress, the soaring cost of living and having to negotiate new taxes into their household budgets.

“Hopefully we will see some more consumers walk through doors and populate their trees in readiness for Christmas.

“The RBA has made the right decision and got the balance right in terms of the economic impact of the cash rate at its current levels,”

“It’s now up to the banks to pass the interest rate cut on in full to businesses and consumers,” Zimmerman said.

For over 100 years, the Australian Retailers Association (ARA) has been the peak industry body in Australia’s $240 billion retail sector which employs over 1.2 million people. As an incorporated employer body under the Fair Work (Registered Organisations) Act 2009 and with a range of member services including employment relations, policy development, advocacy and education, the ARA promotes and protects over 5000 independent and national retailers throughout Australia. Visit www.retail.org.auor call 1300 368 041.