Asda welcomes interest rate cut move

Thursday, 06 November 2008
Asda has welcomed the move by the Bank of England (BoE) to lower interest rates to 3% today, saying consumer confidence will get a lift in the run-up to Christmas.

Yet the retailer said it is essential that individual banks pass on the rate cut so that consumers see the full benefit as disposable incomes fall.

"Everyone has to play their part and financial institutions are not exempt," the company said.

Asda also revealed that it is dropping the price of its unleaded petrol to 92.9p, the "lowest in the UK".

Trading director Darren Blackhurst said: "We are seeing further reductions in our cost price which we're immediately passing on to all our customers as we continue to lead down the price of petrol."

Wal-Mart has said that Asda enjoyed a good October, thanks to increased grocery and clothing sales.

The BoE cited falling inflation for the decision to cut rates so drastically.
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