Retailers 'are discounting heavily'

Aussies may be more tempted to make purchases with their debit cards as retailers have been reducing their prices in a bid to keep consumers spending.

According to Commonwealth Securities chief economist Craig James, companies have instigated "rampant discounting" recently, reports the Australian Associated Press.

He asserted that this has been caused by the need for retailers to "get consumers to part with their cash".

Retail sales data from February this year revealed an increase in spending of 0.5 per cent.

This comes after a report by Bank of America-Merrill Lynch (BAML) cited by the Australian revealed that banks in the country are underestimating the cost of living.

According to the Poverty Index, the average outgoings for an Aussie couple total $1,814 a month.

However, financial institutions forecast that this would be closer to $1,708, prompting Matthew Davison from BAML to assert that banks are lending "too aggressively" against living costs at the moment.

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