RBA urged to prolong low rates
The Reserve Bank of Australia's decision to maintain cash rates at 4.75 percent would redound to more consumer confidence and spending. Nevertheless, it should be extended to strengthen local businesses.
Australia's business sectors are now more optimistic in the near term that consumers will now be more inclined to do more shopping.
Nevertheless, some retailers are seeking that a longer period of low rates will do more good to them.
In a statement, the Australian Retailers Association executive director Russell Zimmerman has welcomed the RBA decision, but pointed out to really establish an effect on the business community, a longer period of reprieve should be implemented.
"Retailers are calling on the RBA to continue their steady hand and keep rates on hold until at least the third quarter while both consumers and retailers get back on their feet," Zimmerman said.
He added that the threat of higher rates in the second half of 2011 could go alongside the anticipated higher oil prices, which could trigger the conservative buying among Australian consumers.