Shopkeepers have expressed relief at the Bank of England’s decision not to increase interest rates.
The decision to keep interest rates at 5% was widely anticipated by analysts, and comes after the Bank’s Monetary Policy Committee (MPC) increased the rate by 0.25% in November.
Minutes from last month’s meeting show that the decision to increase rates was taken after seven of the nine committee members voted for a rise.
The decision by the MPC to raise rates was an attempt to hold down inflation.
The British Retail Consortium (BRC) said they were pleased rates were put on hold this month, but previous increases were affecting consumers.
“Although it’s a relief that rates haven’t gone up this month, we’re still concerned over the two previous increases in the last few months,” said a spokesperson for the BRC.
“There has been no inflation from the retail sector so we saw the previous increases as unnecessary.
“Council rates have gone up and, coupled with increased interest rates, this has a dampening effect on consumer confidence.”
The BRC said they were calling for a genuine cooling of interest rates over the next few months, and described the decision to keep rates the same this month as sensible.
© Crimson Business Ltd. 2006
