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BoE decision heaps further financial pressure on consumers, businesses - BRC

Thu, May 8 2008, 12:15 GMT
http://www.afxnews.com

LONDON (Thomson Financial) - The Bank of England's decision not to cut interest rates on Thursday adds further pressure on businesses and individuals' personal finances, a business lobby said.

The British Retail Consortium said that while it understands the BoE has a difficult task of balancing downside risks to the economy with the prospect of rising price pressures, "financial indicators overwhelmingly point to a gloomy outlook".

BRC director-general Stephen Robertson also said there has been little sign yet that the central bank's rate cuts since December have been passed on to consumers and businesses, who have been struggling with higher borrowing costs.

"With interest rate changes often taking a year to work through, the sooner the BoE cuts again, the sooner and greater the relief for hard-pressed consumers and retailers," said Robertson.

chinny.li@thomsonreuters.com

cml/cmr

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