The Bank of England’s decision to keep interest rates on hold is the right one says the British Retail Consortium (BRC), but the Bank should not rule out making rate cuts as soon as it can.

Stephen Robertson, BRC director general, said: “With a difficult balancing act to achieve between keeping the inflationary threat at bay while also stimulating the economy in the midst of the current slowdown, this is the right decision for now.

“At our quarterly meetings with the Bank of England, the BRC and major retailers are saying weakening sales and record low consumer confidence show the downturn is deepening. To avoid turning the slowdown into a slump, as soon as conditions allow, the Bank’s next rate move should be down,” he said.

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