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Friday November 7th 2008
bssa welcomes bank rate cut
Archived article dated Friday November 7th 2008
The significant cut in rates to 3%, the lowest rate since 1955, has been welcomed by The British Shops and Stores Association
'Many of our members have experienced unreasonable levels of increase in loan and overdraft charges in the past months that has placed severe strain on them' said John Dean, bssa Chief Executive. He argued that the real challenge now will be for the banks to pass on this cut in its entirety to borrowers. 'If the Government cannot persuade lenders to pass on this rate cut, then banks must be shamed into doing it' said Dean.
With Christmas approaching it is hoped that this will provide a real fillip to consumer confidence which in turn will result in more buoyant Christmas trading than might otherwise have been expected. However, in the longer term Dean believes that the level of unemployment in 2009 and a stemming of house price falls will be the deciding factor on a return to sustained consumer confidence.'The jury is still out, but we applaud the Bank of England for recognising that the threat of a severe and sustained recession has overridden any short term concerns regarding inflation'
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