Retailers have welcomed the decision by the Reserve Bank of Australia (RBA) to keep interest rates on hold.
The move comes off the back off the back of a couple of days of sharemarket volatility, while consumers continue to tighten their belts due to cost-of-living pressures.
NRA Interim CEO Lindsay Carroll said she welcomed the RBA heeding the call of retailers who had warned against an August rate hike.
"The NRA warned in June that a rate hike could leave retail in a vulnerable position in the lead up to the all-important Christmas period," Ms Carroll said.
"Retailers will breathe a sigh of relief that households won't lose any further discretionary spending power. The latest round of ABS retail trade figures for May saw an uptick in sales but that momentum would have been stalled with a rate rise.
"If we're to see an ongoing revival in consumer confidence we can't afford any further pressure on household budgets.
"The retail sector remains in a delicate position, with small businesses still grappling with rising overhead costs while trying to keep prices affordable for customers.
"ABS data for retail over the coming months will need to remain closely monitored by the RBA when making decisions about the cash rate between now and Christmas. Retailers simply can't afford a repeat of the sluggish festive season they experienced in 2023."
The National Retail Association represents more than 60,000 stores across Australia. It has been serving businesses in the retail and fast-food sectors for close to 100 years.
