Bira welcomes BoE interest rate cut as “positive step” for retail

The British Independent Retailers Association (Bira) has welcomed the Bank of England's decision to cut interest rates.

08 Aug, 24

The British Independent Retailers Association (Bira) has welcomed the Bank of England’s decision to cut interest rates as a positive step for retail.

Inflation fall is step to bringing customers back to high street, reports Bira

Marking the first reduction since March 2020, interest rates have been cut from 5.25% to 5%.

Bira said this move is a positive step for the retail sector and the wider economy.

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The decision comes after the Bank of England’s rate-setting committee voted by a majority of five to four to reduce the rate.

This base rate is closely followed as it heavily influences the rates set by high street banks and money lenders.

CEO of Bira Andrew Goodacre said:  “We have been calling for a cut in interest rates for many months and so we are delighted that the Bank of England has finally decided to listen.

“Interest rates climbed too high too quickly, and whilst we can see that not all inflationary pressures have eased, the cut is needed to bolster consumer confidence, which in turn should boost consumer spending.”

He added: “The cut will be seen as an important staging post as the economy starts to turn the corner on years of inflationary shocks.

“Businesses can start to anticipate cheaper borrowing and investment funding.”

Bira believes this rate cut will provide “much-needed” relief to independent retailers and consumers alike, potentially stimulating spending and investment in the retail sector.

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