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
-
Bristol health store toasts four and a half decades on the high street
An independent health and wellbeing store is marking a milestone anniversary this month, celebrating 45 years of trading.
-
Eight independent shops shortlisted for high street award
Eight independent retailers have been shortlisted for this year's Love Your High Street Awards, with the public now able to vote for their favourite.
-
Bira warns new visitor levy risks squeezing high street spending
Bira has raised concerns that the government's new Overnight Visitor Levy could reduce the amount visitors spend on Britain's high streets.
-
Independent retailers urge Chancellor to turn growth ambition into action on business rates
Bira has welcomed the Chancellor's growth ambitions but says independent retailers now need to see the benefit in their own cost base.