As rates fell to historical lows this week, CEO of Betta believes it will boost a struggling retail sector.
“I think it will have an impact but I don’t believe it will be immediate,” Graeme Cunningham CEO of Betta Home Living, told CN, speaking about this week’s interest rate cut.
However, Cunningham believes consumers will wait until after the September 07 election before they part with their cash.
“I think most consumers will wait until post election and weigh up the overall outlook for the economy under a new government before we see any changes in spending.”
Retail group ARA say the Reserve’s latest rate cut is a last ditch attempt to “save the furniture” before the election amid political instability, and called on the banks to pass this rate cut in full.
The RBA lowered the cash rate by 25 basis points to 2.5 percent, placing interest rates at an all time historic low.
