01 August 2024
Bira has welcomed the Bank of England's decision to cut interest interest rates from 5.25% to 5%, marking the first reduction since March 2020.
Bira has said this move is a positive step for the retail sector and the wider economy.
Andrew Goodacre, CEO of Bira said: "We have been calling for a cut in interest rates for many months and so we are delighted that the Bank of England has finally decided to listen. Interest rates climbed too high too quickly, and whilst we can see that not all inflationary pressures have eased, the cut is needed to bolster consumer confidence, which in turn should boost consumer spending."
He added: "The cut will be seen as an important staging post as the economy starts to turn the corner on years of inflationary shocks. Businesses can start to anticipate cheaper borrowing and investment funding."
The decision comes after the Bank of England's rate-setting committee voted by a majority of five to four to reduce the rate. This base rate is closely followed as it heavily influences the rates set by High Street banks and money lenders.
Bira believes this rate cut will provide much-needed relief to independent retailers and consumers alike, potentially stimulating spending and investment in the retail sector.
Find out more about Bira's policies and campaigns.
Got something to say on this story? Scroll down and leave a comment.
Related News
All News-
A new licensing scheme is being proposed by the Government to block illegal knife sales and imports
The new licensing scheme being proposed by the Government is set to help save lives ad keep dangerous weapons out of young hands by blocking illegal knife sales and imports.
-
Employers’ Duty to Inform Workers of Their Right to Join a Union
Bira has responded to the Government’s consultation on proposals to introduce a new duty for employers to inform workers of their right to join a trade union.
-
Scheme to send shop thieves to court without need for arrests praised by Bira
A new scheme allowing suspected shoplifters to be sent to court without being arrested has been welcomed by Bira as a faster way to deliver justice and deter shop theft.
-
Scottish Government urged to cut business rates for indie retailers
Bira has called on the Scottish Government to follow Wales's example and introduce genuine business rates reductions for retail premises ahead of the Scottish Budget on 13 January.