Australian retailers have welcomed the Reserve Bank’s decision to hold interest rates this month but have called for immediate rate relief as Christmas trade starts to quieten.

New Governor Michele Bullock raised interest rates to 4.35 percent just before the Black Friday and Cyber Monday sales to put a dampener on consumer spending in November.

National Retail Association Deputy CEO Lindsay Carroll said the RBA’s decision to hold interest rates while acceptable, isn’t good enough for retailers struggling to make it through Christmas.

“Retailers have been waiting all year for the big pay out that comes from pre/post-Christmas sales, but the interest rate rise in November was a heavy blow to consumer confidence,” Ms Carroll said.

“Retailers brought their Black Friday and Cyber Monday bargains forward by three weeks in anticipation that last month’s interest rate hike would affect spending over Christmas.

“We have predicted $63 billion in retail spend by the end of Christmas, and while that number looks big, it will be flat earnings for the sector compared to last year,” she said.

The Australian Bureau of Statistics (ABS) revealed retail trade fell 0.2 percent in October, which comes after a 0.9 percent increase in consumer spending in September.

“Retailers need all the income they can get after a flat year of trade and the RBA can’t keep knocking consumer spending on the head the moment businesses get a win,” she said.

“The industry needs more than a hold on current rates, it needs relief from high-interest rates in January so retail owners can start the next year with renewed confidence.

“Industry sources have forecasted a drop in Christmas trade across some states, which means the consequences of the Reserve Bank’s recent rash decisions are having adverse effects on what should be retail’s biggest season.

“Retailers are going to do what they can to get shoppers through the door this festive season, so we encourage Aussies to head to the stores and get in on these huge bargains because it will be a buyers’ Christmas.”

The National Retail Association represents more than 60,000 stores across Australia. It has been serving businesses in the retail and fast-food sectors for close to 100 years.

For more information, contact the National Retail Association media unit on 0467 792 013.