| |
By Sarah Falson | Tuesday | 05/02/2008
Consumer electronics and IT retailers could be headed for strife this month after news that the Reserve Bank of Australia (RBA) has hiked interest rates by 25 basis points to 7 per cent – signalling the highest interest rates in the country for 11 years. In an industry that survives mainly on ‘pleasure-items' such as TVs, MP3 players, digital cameras and navigation devices, the consumer electronics market could be the hardest hit, with IT and computer retailers also feeling the effects.
According to the Australian Retailers Association (ARA), the economy is still yet to feel the flow-on effects of the last rate rise which happened last November, up 25 basis points to 6.75 per cent.
Today's rate rise will put more strain on an already tight retail economy, which is typically at its lowest in February after the January post-Christmas sales, says ARA.
"February brings the triple cash drains of Christmas credit card debt due, BAS statements to be filled and paid and back-to-school costs. This rate rise will only put added pressure on families with mortgages and small businesses," said ARA executive director, Richard Evans, in a statement to the press.
Print this article
Email this story to a friend
Link this story:
|
|
|
|
