By Shivaun Hales

The Reserve Bank of Australia (RBA) has decided to put interest rates on hold at 4.25%, following a cut in November.

Many economists tipped a rate cut today with rising unemployment, a weak housing market, poor retail sales and easing inflation expected to influence the decision.

In a blow to the retail industry, Australian National Retailers Association (ANRA) CEO Margy Osmond said a rate cut was needed after a fall in December retail sales.

“Christmas, while an improvement on the previous year, did not deliver enough eagerly awaited Christmas cheer to the as we needed. This year is shaping up to be a continuation of consumers saving and retailers discounting,” she said.

“Retailers will be looking to the Reserve Bank of Australia to reduce the cash rate tomorrow to stimulate spending growth, urging the banks pass that rate cut on to their customers,” added Osmond.

Australian Retailers Association executive director Russell Zimmerman said a rate reduction from the RBA would have been a big help for the industry.

“Delays to reducing interest rates and in them being passed onto consumers instantly resonate across the retail sector and contribute to more store closures and job losses,” said Zimmerman.