THE National Retail Association says the Reserve Bank of Australia should drop interest rates by at least 50 basis point tomorrow to help revive the struggling retail industry.

The latest retail trade figures show that key discretionary categories – household goods, clothing and footwear and department stores – are struggling to get out of negative growth and trading conditions remain extremely difficult. NRA says ABS labour force data also reveals the retail sector has shed more than 26,000 jobs over 12 months.

National Retail Association executive director Gary Black said the battered retail sector needed the “shock treatment” of a double rate cut in order to deliver the boost to consumer spending that would help businesses get back on their feet.

“Most commentators seem to expect the RBA Board will move to cut rates by at least 25 points,” Mr Black said.

“What concerns the NRA is that the markets, commentators and even consumers will have factored this cut into their thinking already, and the official announcement will have little, if any, impact on discretionary spending.

“This is compounded by doubts about whether banks will pass on a small cut in full, or at all.

“If the RBA genuinely wants to stimulate activity in the economy by cutting rates, they should move decisively and cut hard.”