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Bank of England must resist raising interest rates
The Bank of England must resist calls to increase interest rates, the British Retail Consortium has urged.
Weak Christmas retail sales figures show conditions on the high street are fragile and make the case for interest rates to remain unchanged, said the BRC.
The figures, published last Friday by the Office for National Statistics, show extreme weather and economic worries hit sales.
Sales volumes were lower in December than November, and flat compared with December 2009.
“These figures back up the BRC’s own, which show 2010 ended on a flat note for many retailers. The unusually early winter weather compounded the effect of economic worries to make a difficult Christmas worse”, said Stephen Robertson, director of the British Retail Consortium.
“While economic recovery remains so fragile, the Bank of England must resist from raising interest rates.
“The private sector still needs support. Holding interest rates and keeping the March Budget free of new burdens are key to enabling retailers to continue their vital contribution to job creation and growth”, Robertson added.
Lucy Shaw, 24.01.2011