The British Retail Consortium (BRC) has welcomed the Bank of England’s decision to keep the base rate of interest at 5%, but urged it to cut this figure in the near future.
Director general at the BRC Stephen Robertson commented that this is the “right decision for now” because of the high level of inflation and economic growth at a “standstill”.
However, he added that the balance is tipping in favour of a rate trim because of fears a recession could be become a possibility.
Robertson said: “The Bank should not risk making a difficult situation worse by delaying a rate cut any longer than is absolutely necessary.”
Interest rates have not been cut by the Bank’s monetary policy committee since April this year, when it voted to lower them from 5.25%.
The BRC revealed this week that food price inflation slowed year-on-year in August to 10%.
