Rate cuts 'won't necessarily boost Aussies' spending'

Mozo

Wednesday 25 April 2012

Retailers will be hoping that any cuts to interest rates will encourage Aussies to start splashing the cash, but they may be left disappointed.

The Reserve Bank of Australia is expected to lower the official cash rate at the start of May, which will be a relief to many shop owners down under.

However, chief executive of Westfarmers Richard Goyder suggested that people will still not be tempted to alter their spending habits.

He admitted that a rate cut would act as a confidence booster for businesses, but predicted Aussies will remain cautious with their money.

Plenty of households have been forced to take a firmer grip of their credit and debit cards, as the economic downturn has left many fearing for their jobs.

Aussies have also been blighted by the increasing cost of living, with essentials such as petrol becoming less affordable for many. It appears that the days of forking out for expensive luxuries are gone for a lot people.

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Rate cuts 'won't necessarily boost Aussies' spending'

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