Sluggish retail sales add to prospect of RBA rate cut

The data confirms that the right approach for RBA is to ease off the interest rate brake, to help stimulate a soft economy, writes KPMG Australia Chief Economist Brendan Rynne.

Monthly retail sales grew slightly under market expectations in March, while the quarterly figures show flat volumes and a 0.4 percent decline in per capita terms. This sluggish performance, reflecting a slowing economy, adds to the likelihood of a Reserve Bank of Australia (RBA) interest rate cut later this month. The more subdued result last quarter follows sustained promotional activity in late 2024, which had boosted discretionary spending in the December quarter. The data reinforces K...

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Authors: Brendan Rynne

Published Date: 07 May 2025