Retailers have breathed a sigh of relief with the decision of the Reserve Bank of Australia (RBA) this afternoon to keep the cash rate stable at 4.75 per cent, according to the Australian National Retailers Association (ANRA).

ANRA chief executive Margy Osmond said “This is the right move for Australians with a mortgage and it’s the right move for the Australian economy.

“With a two-speed economy, retail has stayed in the slow lane and any additional pressures on consumer’s discretionary spending would hit the retail sector hard.

“Consumers are choosing to cut their discretionary spend every time interest rates and utility costs go up.

We know from a recent survey that about 40 per cent of Australians are cutting shopping due to rising utility costs, which are taking a bite out of personal budgets.

“Almost a quarter (23 per cent) of respondents said their saving intentions were impacting on their discretionary spending choices, and mortgage repayments are still a concern –11 per cent say interest rate rises will force them to slice into spending money.

“Australians are doing what the RBA needs them to do – they are saving more and cutting their debts – two good reasons to keep interest rates stable for some time to come,” Mrs Osmond said.