Cafes and restaurants, which are again leading the charge with an increase to retail figures of 0.3 per cent, cloud the reality of a low 0.1 per cent rise for the rest of the sector, according to the Australian National Retailers Association (ANRA).

ANRA chief executive Margy Osmond said the services element of the sector has expanded 15 per cent in the past 12 months, while other retailers have seen a dismal 2.2 per cent rise.

"Retail continues to struggle and we would hope the Reserve Bank has this 'front of mind' when considering interest rate rises today," she said.

Mrs Osmond said an interest rate hike today might be minor, but any additional pressure on families is a threat to consumer confidence, and for retailers "looking down the barrel to an important Christmas period."

Retailers will be forced to remain on sale, although that may not be enough to attract consumers.

According to a recent survey conducted by ANRA of 1000 Australians, 26.9 per cent were more confident than they were a year ago, although that would not necessarily convert into sales.

"Of those shoppers with a mortgage, 63 per cent of them said they would cut their retail spend if interest rates go up today," Mrs Osmond said.

"Confidence figures and retail figures used to track closely, but that's not the case anymore. Australia has a new consumer, post global financial crisis, they are saving more, spending less and only spending when significant discounts are available."

Although the majority of survey respondents (55.8 per cent) retained the same level of confidence as in June, they were planning to cut on their spending in the next few months, even allowing for the peak Christmas shopping period.