Retailers are devastated by the Reserve BankÍs decision to raise interest rates to 4.75 percent yesterday, just one month before Christmas, said the Australian Retailers Association.

The Association’s executive director Russell Zimmerman said retailers needed the RBA to continue its freeze on interest rate rises in the lead up to Christmas to give retailers a chance to recoup over a year of slow trade during the end-of-year holidays.

ñHistory tells us that when consumers have to deal with increased mortgage repayments in the few months before Christmas it has disastrous impact on retail trade during the festive season.  

This time last year, the RBA ruined the chance of a strong Christmas with several rate rises leading into the holiday trade period. This is a heavy handed and unnecessary decision that could have been delayed especially considering the current low inflation rate and the strong Aussie dollar.