Retail figures have fallen more than expected which indicates the retail and household sectors have been struggling with cost of living pressures.

Ross Greenwood speaks with NAB Cheif Economist Alan Oster.

“I think it’s more likely the Reserve’s going to be very patient.

“If things develop and they’re okay, I still think maybe by about August they might start to very slowly withdraw some of the emergency stimulus, in other words, put up rates.”

Mr Oster tells Ross that retail imports like the Black Friday sales have had an impact.

“You had massive rales sale in November and you reversed it in December.

“What you’ve got is some unusual seasonal specials.

“Our view would still be that discretionary retail is still doing it very, very tough.”

Listen to the full interview below