Retail sector players in Australia are expecting the country's central bank, the Reserve Bank of Australia (RBA) to take steps to boost the economy after the consumer spending recorded its biggest fall in two years in the country.

The total trade in the retail sector fell 0.8 per cent in July to $21.4 billion after season adjustments were included. Analysts were expecting the overall spending in the sector to rise 0.2 per cent, according to the data released by the Australian Bureau of Statistics.

The sales at department stores have fallen by a disappointing 10.2 per cent during the month, which is the biggest fall since April 2005. Australian National Retailers Association chief Margy Osmond said that the retail players are looking at the RBA board meeting, which is scheduled for tomorrow, expecting some steps to boost consumer spending.

"Consumers are obviously cautious with the introduction of the world's biggest carbon tax, and the shortlived impact of the government's one-off sugar hit in the last budget," Mr. Osmond said in a statement.

Economists believe that the RBA might not be able to reduce the cash rate, which is already at 3.5 per cent but some believe that the bank might consider reducing it further in the coming months.