news: gerry harvey expects sharp fall. From News Ltd:
Retailers are also facing another clamp on the recovery in consumer spending that started late last year, as the central bank moves to head off a rise in inflation out of its target range of 2-3 per cent.
Harvey Norman chairman Gerry Harvey said he was surprised the RBA raised interest rates at a time of record petrol prices, and he expected a sharp fall in consumer spending.
"When combined with petrol, it's going to scare a lot of people off, no doubt about that," he said.
Major banks were preparing to pass on the rate rise to customers, probably in full, before the end of the week.
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