By Stella Qiu SYDNEY (Reuters) -Australian retail sales firmed for a third straight month in October as tax cuts flowed through to wage packets and consumers became more confident that interest rates would not increase again,

Economists say a strong rise in retail spending in October could show the protracted household spending downturn is over, as tax cuts encourage shoppers to splurge.

Australian retail rose strongly in October which could further dent hopes of an interest-rate cut from the Reserve Bank of Australia by early next year.

Australian retail sales rose by more than expected in October as tax cuts flowed through to wage packets and consumers became more confident that interest rates would not increase again, although monetary easing still looked distant.