BUSINESS groups are still hopeful
the central bank will cut the cash rate again in November, despite a
bigger than expected jump in inflation.
Retailers took heart from the fact the annual consumer price index
at two per cent is at the lower end of the Reserve Bank of Australia's
(RBA) target band, even though it jumped 1.4 per cent in the September
quarter.
Australian National Retailers Association chief Margy Osmond says there's still room to drop the official interest rate further.
"Retailers will want to see the cash rate continue down before Christmas," she said in a statement.
"The
RBA set Christmas off and racing with the cash rate drop at the start
of the month. We hope to see the theme continue come Melbourne Cup Day."
The RBA's November board meeting often coincides with the "race that stop a nation".
The Australian Chamber of Commerce and Industry said while the
inflation figures were higher than expectations, the broad economic
climate, and the conditions on the ground for small and medium
enterprises, demanded further consideration be given to a rate
reduction.
The chamber's director of economics and industry
policy, Greg Evans, said annual underlying inflation - which smooths out
volatile price swings - at 2.5 per cent was also consistent with the
RBA's forecast by the end of 2012.
"With the outlook for the
global economy deteriorating and having prompted a sharp correction in
bulk commodity prices, there remains a compelling case for another rate
cut," Mr Evans said.
"Sluggish employment growth and the upward
trend in the unemployment rate, also highlight the need for additional
interest rate relief."
New government data also released on
Wednesday showed that job advertisements on the internet tumbled 7.7 per
cent in September to their lowest level in nearly seven years.
