The Reserve Bank of Australia (RBA) held the interest rates at 4.35 per cent, a move retailers said is a “missed opportunity” to boost sales for the holiday season.

“Many retailers have been investing heavily in Christmas and the holiday season, including additional staff, new product lines and festive store fit-outs,” said Paul Zahra, CEO of the Australian Retailers Association (ARA).

“With CPI at its lowest rate in more than three years, it’s time for the RBA to reduce the pressure on households and businesses by lowering the current cash rate.”

In a statement, the RBA said that it would take some time before inflation sustainably falls within the target range of 2 per cent to 3 per cent and approaches the midpoint.

“Policy will need to be sufficiently restrictive until the board is confident that inflation is moving sustainably towards the target range,” said the RBA.