Retailers welcome interest rate freeze

But they urged the Bank to resist further increases in the near future.

The British Retail Consortium (BRC) said it was in favour of a prolonged freeze following the series of rate rises in recent months.

The lobby group believes it is now time for the Bank to hold off on any further increases while the full impact of recent hikes work their way through the system.

BRC director general Kevin Hawkins said: “This is the correct decision and will give retailers some much-needed breathing space. Indicators clearly show that inflationary pressure is already easing.

“Consumers are certainly starting to feel the squeeze. Disposable income growth is at record lows and savings levels are also very low. It is obvious that previous rate hikes are already having an effect but we won’t see the full impact on consumer confidence and sales until later in the year.

“With food inflation starting to ease and non-food prices continuing to decline it is obvious that there are no inflationary pressures coming from the high street. What retailers need now is a prolonged period of interest rate stability.”