Base rate rise could affect consumer spending, BRC warns

Consumer spending in the UK might be negatively impacted by a base rate increase this month, one organisation suggests.

In a development which may interest the likes of adverse credit credit cards users, the latest Bank of England base rate decision is due today (February 10th).

However, the British Retail Consortium (BRC) feels that the rate should not be put up by the Bank just yet, as public spending cuts and higher taxes are already taking their toll on the country's residents.

Stephen Robertson, the BRC's director general, commented that the high street is not responsible for the country's growing inflation levels.

He stated: "Raising rates at a time when consumer confidence is weak, the housing market is slowing and lending hasn't revived would only undermine a very uncertain recovery."

Earlier in the week, Mr Robertson also suggested the government's forthcoming financial Budget should not increase the pressures which people are already facing at present.

Posted by Tom Burroughs.