2 August 2001, 16:41 UK BRC fears rate cut may induce rate hike later in the yr
LONDON (AFX) - British Retail Consortium said it finds "little
justification" for the the Bank of England's decision to lower
borrowing cost, expressing concerns that the move may induce a rate
hike later in the year.
"Our retail members would rather see the interest rate held now
than experience damaging effects later," said BRC economist Pamella
Webber.
She said retailers are worried that the rate reduction might
provoke the need for a "large" rise in interest rates later in the year
-- a move that could potentially sap consumer confidence and halt
economic growth.
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