Retailers are rejoicing following the Reserve Bank of Australia’s (RBA) decison to lower the cash rate to 2.5 per cent.

Australian National Retailers Association (ANRA) CEO, Margy Osmond, said the lowering of interest rates will give retailers a leg up in tough trading conditions.

“Yesterday’s (June retail turnover) data clearly shows more needs to be done to kick-start the retail economy,” said Osmond.

“It’s now the responsibility of the banks to fully pass on today’s rate cut and ensure the policy intentions of the RBA can be felt by households and spending can get moving again.

“We would urge the banks to consider the implications that not passing on the full rate cut might have on businesses, and importantly the retail sector, post-election and into the key Christmas period,” she said.

The decision is also expected to assist retailers by boosting consumer confidence ahead of the September 7 Federal election.

Australian Retailers Association (ARA) executive director, Russell Zimmerman, said the RBA have stepped in to ‘save the furniture’.

“The RBA have provided some relief to Australian retailers, although it is concerning that this cut has come on the back of flat retail sales, predictions of rising unemployment and falling consumer and business confidence,” said Zimmerman.

“While rate cut decisions are no silver bullet for retail sales, the sector will at least be hopeful some of the financial pressure on shoppers eases, and this will make way for growth and employment within the $258 billion industry.”