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Bank of England slashes interest rates to 2%

The Bank of England has slashed interest rates to 2%.

The 1% cut in interest rates will be a welcome boost for retailers that have seen a significant drop off in consumer spending in recent weeks.

However, the Bank of England slashed interest rates by 1.5% to 3% last month but according to retailers, this has not yet had any impact on spending because of widespread nervousness around the economy and fears around unemployment.

British Retail Consortium director general Stephen Robertson said: "This is exactly the type of decisive action we need during these uncertain times. With the threat of inflation fading, the Bank of England is right to concentrate on jump starting the economy."

"Decisions now will greatly influence how long and deep the recession is."

"Retailers are passing on VAT cuts and going further with big discounts of their own to help hard-pressed customers. The Bank's job is not done. It must continue to cut rates in the New Year to get the economy heading in the right direction again."

Readers' comments (3)

  • Good news but this is going to take a while to filter through to consumer spending especially with so much bad news out there and so many people being so fearful for their jobs. The only way to get people back in your store is to offer high street style discounts at the moment. There is a definite feeling that this is not going to be a full price Christmas for anyone. Shoppers are resenting any shops not offering them incentives at the moment.

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  • Good news but this is going to take a while to filter through to consumer spending especially with so much bad news out there and so many people being so fearful for their jobs. The only way to get people back in your store is to offer high street style discounts at the moment. There is a definite feeling that this is not going to be a full price Christmas for anyone. Shoppers are resenting any shops not offering them incentives at the moment.

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  • in reply to the person below,

    you obviously are not a retailer but the typical pain in the butt customer wanting everything for nothing while looking like a clone in your high street outfit that you bought online with savings vouchers you printed when the email netted you in to come in for the big rip off. get a grip do you think all shops need to do the debs. m&s offer? had you bothered to shop at unique independents maybe then you would see that different shops offer different things and then you would not be one of the little sheep following the herd. baa - baaa!!!!

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