Kevin Hawkins Change Quotations

We did not expect any change in interest rates today from the Bank of England, although clearly a further reduction in the run-up to Christmas would have been helpful to both retailers and industry in general.

No one should be fooled into believing that the slight improvement relative to July indicates a change in trend. Any growth came from heavy discounting, which is not sustainable - especially as retailers' margins are already being squeezed by rising labour, property and energy costs. The underlying position is still weak and unlikely to improve unless and until there are further cuts in interest rates.