Home > Latest News > Retail Associations Slam Rate Rise: “Should Have Waited”, “Blow For Businesses”

Retail Associations Slam Rate Rise: “Should Have Waited”, “Blow For Businesses”

Two of the national bodies that represent the retail sector have slammed the RBA’s decision to hike interest rates by 0.5 per cent.

National Retail Association CEO Dominique Lamb (pictured below) believes that a full month of data should have been crunched by the Reverse Bank, following the last rate hike, before making such a drastic leap.

“Many business owners believed the promises of the RBA not to move on interest rates until at least 2023,” she said.

“For some, it was the assurance that helped them to get by through COVID, floods and other disasters. This decision today will almost certainly be the last straw for many of them.

“We know that the inflationary pressures in the economy are being driven by external factors such as skyrocketing fuel and power prices, as well as the impact of recent flooding on fresh food.

“These are already having a significant impact on spending and on the viability of many retail businesses.”

Australian Retailers Association chief executive Paul Zahra called the rate rise a “blow for businesses” who are already dealing with a multitude of external pressures.

“While we appreciate the RBA is attempting to curb inflationary pressures, this rate rise is a blow for businesses who are managing cost pressures from every angle,” he said.

“From supply chain delays, staff shortages, and the rising cost of fuel and materials, many of the cost pressures this year are unprecedented, leaving some businesses struggling to keep their heads above water.”



You may also like
Aussies Tipped To Spend $6.3BN On Easter DIY
Retailers Who Knock Back Pay Rises Backed By RBA
Squeezed Budgets Led To Slow August Retail Turnover
ASIC’s Plans To Investigate Scams & Exploitive Lending
Retailers Not Confident As Economy Sags