Retailers’ association, BIRA, has welcomed the Bank of England’s decision to cut interest interest rates from 5.25% to 5%, the first reduction since March 2020.
The British Independent Retailers Association, which works with over 6,000 independent businesses of all sizes across the UK, 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.
“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.
