The ARA has expressed concern for Australia's smaller retailers and chains at the RBA's action to raise the official cash rate today by 25 basis points to 7.25 percent.
After publicly stating last month that post-Christmas sales estimates show consumers are already restricting their spend, the Australian Retailers Association (ARA) believes the today's interest rate rise will hit small retailers and chain stores hard on two fronts.
ARA's Executive Director Richard Evans said the retail sector is already feeling the pinch with a reduction in demand and this latest rate rise will be felt almost immediately in daily takings for smaller retailers.
"Add this to the increased cost in finance funding, and small business all over Australia will now suffer. We expect the November rate rise to have an impact now and today's rate rise to have an impact in four months time. We are moving beyond the peak of growth and we are expecting growth but on a reduced scale this year (5.5% vs 7.6% last year)," Evans said.
