There have been calls for a further cut in interest rates as figures released today show that high street sales fell to their lowest level in three years in 2007. Like-for-like sales across the sector rose by only 0.3 per cent in December compared to 2.5 per cent growth the previous year, according to the British Retail Consortium (BRC). Analysts believe the credit crunch has resulted in more people choosing to save rather than spend.
Free loan quote Clothing and footwear were the poorest performers, with women s clothing particularly badly hit. BRC Director General Kevin Hawkins said the figures pointed to a very challenging first half for 2008 . He added: Given that the full effects of the Bank of England s previous increases in interest rates have yet to be felt by many households, retailers and manufacturers alike need a rate cut now.
The Bank of England reduced interest rates by 0.25 per cent in December, the first cut in over two years.