The Reserve Bank of Australia’s latest cash rate decision has been described by the Australian Retailers Association as a “missed opportunity” to provide relief for households and businesses this festive season.

The RBA on Tuesday decided to hold the cash rate at 4.35 per cent, which has remained unchanged since December last year.

This comes as bad news for retailers, especially smaller businesses, amid challenges from subdued consumer spending and rising business costs, according to ARA chief industry affairs officer Fleur Brown.

“With the peak trading period now underway, where many discretionary retailers make up to two thirds of their annual profit, a rate cut would have provided retailers with renewed confidence across Christmas and the New Year,” Brown said.

Retailers have been investing significantly in the Christmas season, she continued, adding that they employ tens of thousands of casual workers over this time, providing an important source of additional income for Australians.

“The holiday season is crucial to ensure retailers can weather the slower months ahead,” she added.

Brown said the ARA will continue to advocate for relief measures from the Federal Government to ensure the $430 billion retail sector not only survives but thrives.

“It’s vital that retailers – both small and large – are given the confidence to continue investing in their businesses through the critical months ahead,” she concluded.