If the Reserve Bank needed any further justification to cut the cash rate this week it was another set of limp retail spending figures, which doesn't bode well for the economy overall.
Spending grew by 0.1 per cent in June to be just 2.8 per cent higher over the year, the slowest pace in three years.
Treasurer Scott Morrison concedes the latest retail spending figures are at the low end of expectations but says Australia is facing the same headwinds as other economies.
"Australia is not alone in this challenge but I can tell you I would rather be the treasurer in the Australian economy than any other economy in the world," Mr Morrison told reporters in Sydney on Thursday.
Australian Retailers Association executive director Russell Zimmerman hopes with the federal election now out of the way, the latest interest rate cut will help stem the slide in spending.
"Elections are notorious for causing lower consumer confidence and depressed sales, which appears to have been the case here," Mr Zimmerman said in a statement.
Over the June quarter retail spending grew by just 0.4 per cent.
"Today's data highlight some underlying fragility in the economy and reinforce the appropriateness of ultra-easy monetary policy settings," ANZ senior economist Jo Masters said.
Monthly international trade figures released earlier this week suggested exports will have made only a minor contribution to June-quarter GDP after their strong showing in the previous quarter.
The June quarter national accounts are released on September 7.
The retail figures were released amid political anger over the big four banks' decision to pass on only half of the Reserve Bank's 0.25 per cent cut in the cash rate to a record low 1.5 per cent.
Opposition Leader Bill Shorten said the Reserve Bank did this to help revive the Australian economy.
"Who do these (retail) banks they think they are?" Mr Shorten told reporters in Sydney.
"They can pocket $1 billion in profit off a policy decision designed to get the Australian economy moving again."
Prime Minister Malcolm Turnbull announced the banks will now be required to face the parliament's economics committee at least once a year to give a full account of the way in which they are managing their affairs, their dealings with customers and their interest rate policy.
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