The Australian Retailers Association has recovered from the joy experienced from last week’s interest rate cut to today complain that not all the banks have passed on the Reserve Bank’s 25 basis point cash rate reduction.
“Retailers rely on finance keep their doors open and many are small-to-medium enterprises grappling with the cost of conducting their daily operations,” said ARA executive director Russell Zimmerman.
“There have been reports of some movement from banks towards passing on the rate cut, but sooner rather than later would benefit all involved, especially given the critical time of year for the retail sector.
“Retailers need to know whether banks will be able to relieve the pressure of business finance so they can remain competitive and ensure planning and cash flow strategies are in place.
“While some banks have today said the pending interest rate drop will depend on market pricing and other mechanisms, retailers would benefit from knowing whether they can expect any relief, especially as they seek to manage their costs and staffing levels in preparation for festive trading.”