Recent interest rate hikes have influenced the purchasing decisions of almost one in two Australians with a mortgage over the past six months, based on a retail insight survey conducted by the Australian National Retailers Association (ANRA) and American Express.

The national survey of 1000 Australians showed that 24 per cent of respondents with a mortgage had postponed buying large items worth over $500, while a further 24 per cent had only purchased if on sale in the six month period up until 30 June 2010.

Overall, 31 per cent of 1000 participants in the survey said that interest rate hikes had affected their buying decisions on major items over the past six months either driving them to defer purchases or wait for the sales.

ANRA Chief Executive Margy Osmond said the results were expected but concerning for the retail sector and urged the Reserve Bank of Australia to leave interest rates on hold when they announce their decision on Tuesday, August 3.

"Since November last year the retail sector has been operating in a roller coaster sales environment that has been creating a great deal of uncertainty and these results are evidence that higher interest rates - and the expectation of more - are starting to bite," she said.

The news for retailers is not much better over the next six months. According to the survey, 22 per cent of homeowners said they would delay purchases of major items due to further interest rate hikes, while 28 per cent will only buy major items if these are on sale.

In comparison, 47 per cent of all 1000 respondents said interest rates would affect their spending on major items in the next six months, an increase of 16 per cent from 31 per cent for the previous six months.

Mrs Osmond said that despite solid jobs growth, the economy has been recuperating at two speeds and unfortunately for retailers - they are currently in the slow lane.

"Retail sales growth over the past 12 months has only reached 1.8 per cent well below acceptable growth for the sector of around 6.0 per cent," she said.

"A Reserve Bank decision to maintain interest rates at their current level will be a step in the right direction but it will take several months of sustained sales growth before we can safely declare the retail sector on the path to recovery."