Wesfarmers chief executive Rob Scott says the reduction in official interest rates this week will help household sentiment, but it will take some time before there is a substantial improvement in consumer spending and business investment.

Scott said 2024 was “really tough” for borrowers grappling with higher mortgage repayments and grocery bills. That being so, the affordable Wesfarmers-owned homewares retailer Kmart still increased sales and earnings, as did its leading hardware chain Bunnings, facilitating an improved interim dividend.