Executive chairman at Marks & Spencer Sir Stuart Rose has urged the Bank of England to cut interest rates when it meets next week.
Speaking after the company revealed a like-for-like drop in sales of 6.1% in the last quarter, Rose said that confidence among consumers is low and they need a boost in the run-up to Christmas.
“If we had a reduction in interest rates it would be encouraging. It wouldn’t directly affect consumer spend but it would signal to customers that the peak in interest rates has been reached and they can plan for next year,” he commented.
He said that people are “cautious” about their budgets and are “worried” about where savings are during a tumultuous financial climate.
The Bank’s monetary policy committee is due to meet next Thursday (9 October) to decide whether or not to hold rates, currently at 5%.
