Fed: Retailers have called on the RBA to keep rates low

AAP General News (Australia)
04-06-2010
Fed: Retailers have called on the RBA to keep rates low

CANBERRA, April 6 AAP - Retailers have called on the Reserve Bank of Australia (RBA)
to keep interest rates low.

The United Retail Federation wants the bank to resist the temptation to up the cash
rate on Tuesday, when it holds its monthly board meeting.

Federation executive director Scott Driscoll said the sector was experiencing poor
retail trade figures and that a rate rise could cost jobs.

Mr Driscoll said the figures, released by the Australian Bureau of Statistics, had
shown a monthly drop of 1.4 per cent in February, and a drop of 0.9 per cent in December.

"Of the latest three months figures, two of them were in the wrong direction," he said
in a statement.

"These are not trends that the RBA should be seeing as signs of strength and any interest
rate rise today following the RBA's board meeting would be ill conceived."

AAP bsb/ash

KEYWORD: RATES

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