Australia’s small retailers are so furious with the Reserve Bank governor’s decision to raise interest rates that they are calling for him to resign.

The Retail Group, which says it speaks for thousands of small shop owners, says Glenn Stevens is failing to deal with the mining boom’s generation of a two speed economy in Australia.

Glenn Stevens may think he is Sydney’s most boring person but his decisions generate the sort of excitement that most people would prefer to do without.

Yesterday’s decision to lift the cash rate by 25 basis points was almost instantly followed up by the big four banks. And Tony Standley from The Retail Group says Glenn Stevens knows that would put crippling pressure on small retailers.

“The speed at which the banks passed on the yesterday’s round was to say it was done… as if their fingers were poised over the button,” he said.

“The average business person, the average consumer, that day to day activity in business, that is being ignored.

“We believe there should be enough commonsense within the RBA board to understand that. That is the reason why we have questioned Glenn Stevens’ judgement.”

The Retail Group represent small retail outlets like those found in big shopping malls. It says the rate rises are hurting them from both sides. It is costing more to get money from the bank, and fewer people are walking into their stores.

“We have to question whether in fact the RBA really looked at those inputs, which make up their decision,” Mr Standley said.

“If you look at say some of the costs which the average consumer, you and me, are [sic] experiencing right now, with state increases on electricity rates, they should be part of the RBA’s decision making and be discounted.”

Mr Standley says a two speed economy has reemerged, with the mining sector doing well, and most other consumer related sector’s being punished for its success.

He says the RBA is making its decisions with too much regard for the strength of the mining sector, and not enough concern for the welfare of small retailers.

“Our view is the RBA mandate, which is in fact set by the Parliament as to what its role is, really does need to be questioned,” he added.

Retailers are not the only ones hurting. A new survey of the Services Sector, which includes professional vocations such as lawyers and accountants, shows consumers becoming more cautious about their spending.

The Australian Industry Group’s chief executive, Heather Ridout, says five rate rises since October have taken a toll.

“Five of the 12 sectors are still going backwards. You would have to say the lacklustre nature of employment shows how cautious employers are being,” she said.

“But, clearly, the worst is behind the industry and we’re hopeful that the consumer related sectors will start to pick up because we’re seeing quite strong growth in anything related to construction or resources.”

However, according to economists, the pressure on business is going to get worse.

Crude oil prices hit an 18-month high overnight to $US87 a barrel.

Savanth Sebastian, an economist with the Commonwealth Bank, says petrol prices will surge in the coming weeks.

“The national average petrol price is now holding at an 18-month high. Importantly, I think it’s likely that there’s more bad news for motorists around the corner,” he said.

“The Singapore unleaded price, which we derive our petrol from, has tracked significantly higher in the past week. In fact, it’s at an 18 month high. It’s up around 5 to 6 per cent, and that certainly needs to flow through to the pump prices,” he said.

“So we expect that petrol prices will probably rise by about two to three cents a litre over the next fortnight, and the risks are certainly to the upside given that the higher Australian dollar is helping subdue some of that strength in pump petrol prices at the moment.”