Rate decision hailed by BRC

Director general at the BRC Stephen Robertson stated that this is a sensible move at present but still urged the Bank's monetary policy committee (MPC) to lower the rate this year.

Today the BoE left the rate static at 5% as it tried to balance an economic slowdown against growing inflation.

"At our quarterly meetings with the BoE, the BRC and major retailers are saying weakening sales and record low consumer confidence show the downturn is deepening," Robertson commented.

He added: "To avoid turning the slowdown into a slump, as soon as conditions allow, the Bank's next rate move should be down."

Rates have been at the current rate of 5% since April, when the MPC trimmed the figure from 5.25%.