The Bank of England has cut interest rates by a quarter point today (Thursday), to positive reaction from the retail sector.
It is the boost that struggling customers and businesses were hoping for, said the British Retail Consortium (BRC), which had called for a rate reduction.
BRC director general Stephen Robertson said: “This interest rate cut will give customers and retailers a much needed boost. With consumer confidence at its lowest level for 15 years, customers are reining in their spending and every prudent retailer is looking at cost-cutting more seriously than for some time.
“The Bank is understandably concerned about inflationary risks but these are mainly coming from rising world energy and commodity prices which won’t be affected by keeping rates high. Retailers are absorbing many of the input cost increases and intense retail competition means that non-food prices are actually falling, while food price inflation is slowing.
“With interest rate changes taking months to have any effect further rate cuts are needed sooner rather later to avoid a hard landing.”
