The rise in retail trade over December was right on market expectations of a 0.5% rise (CBA (f): 0.8%)). We had beenanticipating a slightly stronger result based on anecdotal evidence of a decent period of Christmas spending. Nevertheless, the outcome is still robust and is well above levels recorded over 2012-mid 2013. The pick up in retail trademomentum over the past five months is another indicator of the transmission mechanism of low interest rates.
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Commonwealth Bank