Retailers call for further cuts to interest rates

Retailers across Australia believe that recent cuts to interest rates were not big enough to encourage more people to splash their cash.

Chief executive of the Australian National Retailers Association Margy Osmond has called on the Reserve Bank of Australia (RBA) to make another adjustment in February in order to help out the industry, the Australian Associated Press reports.

The RBA cut rates by 0.25 per cent in November and December, but Ms Osmond feels that this has done little to help out struggling storeowners.

Despite the cut, new figures released by the Australian Bureau of Statistics showed that spending levels remained broadly flat in November when compared with October.

"Certainly we would have thought in the past that two interest rates cutes would have been enough to stimulate spending – well maybe it takes three now," Ms Osmond told the news provider.

Aussies may require some persuading before they start to flash their credit cards in high street stores, as a recent ING Direct study indicated that 34 per cent are planning to curb their spending in order to save money in 2012.

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