RBA 'should not increase interest rates'

The Australian National Retailers Association (ANRA) has called on the Reserve Bank of Australia (RBA) not to increase interest rates when its board convenes later this month.

According to Margy Osmond, chief executive of the ANRA, the problems experienced in the retail sector mean a hike in the cash rate could add to the industry's woes, reports the Australian Associated Press.

She asserted that the situation was "still tough" and that the short-term prospects for the sector were not likely to get any better.

"We'd certainly hope the RBA takes this on board and that we don't see an interest rate increase in June," Ms Osmond stated.

Despite this, she suggested that Aussies are expected to boost the retail sector by spending money on their credit and debit cards during the Christmas season.

Currently, the cash rate is set at 4.75 per cent and it has been at this level throughout 2011.

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