The Bank of England has raised the interest rate from 0.5% to 0.75%, which is the highest level since March 2009.
The move is only the second time the interest rate has changed in a decade.
Paul Martin, UK head of retail at KPMG, said this could detract retail spend as consumer credit and mortgages will become more expensive.
“While large parts of the retail sector have recently benefitted from a welcome summer boost, consumer confidence still remains volatile, if not subdued overall,” he said. “Once the warm weather and holiday season pass, it is very likely that we will experience a further slowdown of retail performance, as the impact of the latest base rate rise starts to filter down into consumer spend in the autumn.
“Although this base rate rise will give would-be savers more of an incentive to actually save, this will also detract day-to-day retail spend. Consumer credit is now set to become pricier, while other outlays, such as mortgages, will also have a knock-on effect on what shoppers have left to spend.”