At its latest meeting, the Reserve Bank of Australia (RBA) has once again decided to hold the official cash rate steady at 2.75 per cent, which may be of interest to retailers in Australia.

The fate of the cash rate has many effects on retailers across the country, including general levels of affordability for consumers, and even lease costs for retail space.

RBA governor Glenn Stevens stated that the board made its decision in order to help financial conditions stabilise and improve over time. It will also help to keep consistency with the target inflation.

Leaving the cash rate steady will not only allow the effects from previous reductions to still take place, but also provide further growth and strengthening in the economy.

“The easing in monetary policy over the past 18 months has supported interest-sensitive spending and asset values and further effects can be expected over time. The pace of borrowing has remained relatively subdued, though recently there are signs of increased demand for finance by households,” said Mr Stevens.

Keeping the cash rate at 2.75 per cent will allow more households to become comfortable with their finances. This will especially be of use once banks offer their borrowers lower interest rates, reducing the amount that people are paying towards general living expenses.

This reduction in living costs will eventually help to give consumers the confidence to want to spend more on purchases.

The RBA also found that growth across the Australian economy has been a little below trend so far for 2013, which is expected to continue over the near term. This has been attributed to the lower levels of mining investment seen across the country.

In order to meet the market and accommodate demand, it may be useful for retailers across the country to speak with a retail consultant in order to update their retail strategy. This way, businesses can ensure that they are prepared for what the market has in store for them during the next few months.