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Interest rate hike will dampen consumer confidence: BIRA

Interest rate hike will dampen consumer confidence: BIRA
The Bank of England on Thursday hiked its interest rate 0.75 percentage points, the biggest increase in 33 years, to fight inflation set to peak around 11 percent in recession-hit Britain. (Photo by TOBY MELVILLE/POOL/AFP via Getty Images)
POOL/AFP via Getty Images
Pooja Shrivastava
By Pooja ShrivastavaNov 03, 2022
Pooja Shrivastava
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The latest interest rate rise – the biggest increased in more than three decades – will dampen consumer confidence, British Independent Retailers Association (BIRA) has warned reacting to the announcements made by Bank of England today (3).

The Bank of England has raised the base rate of interest by 0.75 per cent points and has said that the UK is already in recession. The Bank has also warned that the country could face a protracted contraction in the coming years, with high inflation. The unemployment rate is also climbing to 6.5 per cent which is also the highest since the financial crisis.

"As expected interest rates have increased and this continues the current trend for negative news for consumers and businesses alike," said Andrew Goodacre, CEO of BIRA. "This latest increase will further dampen consumer confidence and reduce spending at the busiest time of year for retailers."When the Chancellor delivers his Autumn statement on 17 November, we must see some positive news for independent retailers who are increasingly concerned about the future of their business and the communities they serve.

"I do not doubt the challenges faced by the Chancellor and yet we cannot afford to increase the burden on high street retailers. Independent retailers need assurance that business rates will not be increased and energy support will still be in place next year."

bank of englandboëinterest rates

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