The Australian Retailers Association (ARA) is calling on the Federal Government to adopt a range of stimulus measures to accelerate consumer spend ahead of tomorrowÍs expected interest rate cut of 1.0 percent. The associationÍs executive director Richard Evans said the retail market was still suffering from the Reserve Bank of AustraliaÍs (RBA) decision to increase cash rates in February/March last year.  

ñRetailers are beginning to see the benefits of rate cuts from September to December last year but no significant benefit will be felt until March/April,î Evans said. ñRetailers will welcome a further interest rate cut tomorrow for families with mortgages but there wonÍt be an immediate impact. We now urgently require a range of alternative stimulus measures to provide consumer confidence and to inject consumer funds back into the economy.î  

Evans suggested incentives for new credit card products with lower interest rates for business and consumers, personal income tax relief and a targeted consumer stimulus package (reimbursement upon receipt of approved payment).  

ñThe RBA is doing their job by cutting interest rates but the Rudd Government needs to look closely at measures to further stimulate spending and assist – not just home owners – but renters who have mounting credit card debt, as well as small business owners who use credit to fund their cash flows.  

ñWe now see improved growth to return by September 2009, but the rest of the economy lags three to six months behind the retail sector cycle. This means there may not be good news for other industries until December 2009/January 2010,î Evans said.