Australia's peak retail body, the Australian Retailers Association (ARA) has welcomed the Reserve Bank of Australia's decision to hold cash rates at 4.35%.
ARA Chief Executive Officer Paul Zahra said that many retailers continue to face challenging economic conditions, including higher costs of doing business and slow consumer spending.
"This decision will come as cold comfort to many retailers who may have been fearing a cash-rate increase," Mr Zahra said.
"Cost-of-living pressures continue to impact the spending habits of Australians, with many households feeling the pinch.
"Whilst there is no immediate relief in sight, today's announcement will help keep consumer and business confidence steady."
Mr Zahra said small businesses are particularly vulnerable.
"We've seen extraordinary resilience from our retail community in recent years. But with ongoing pressure from many directions, many small businesses are struggling to cope," he said.
"From the impacts of retail crime and ongoing labour shortages to rising costs across the board. Alongside this we have seen the most aggressive industrial relations reform in many decades, which also has flow on costs and impacts on business leaders and their teams.
"Retailers are also heading into peak-season trading, with many trying to regain a stable footing in the lead up to the holiday period.
"This pause on the cash-rate hike will hopefully allow retailers to build momentum into the all-important Christmas trading period where up to two-thirds of discretionary retail profit is made."
Mr Zahra said the ARA will continue to advocate for relief measures from the Federal Government.
"We need urgent action to ensure Australia's $420 billion retail economy not only survives but thrives," he said.
"It's essential that retailers, both small and large, have the confidence to continue investing in their businesses over coming months."
