RETAILERS hoping for lower borrowing costs to kickstart a pre-Christmas spending spree were disappointed yesterday when interest rates were left at 4.5 per cent.
The Bank of England's rate setting panel, the Monetary Policy Committee (MPC), kept rates unchanged for the fourth month, concerned about inflationary pressures triggered by a rapid rise in energy bills.
Andrew Sugden, North East Chamber of Commerce policy director, said: "Businesses were hoping for a slice of early Christmas cheer, with the outside chance of an interest rates cut but, predictably, the Bank of England continued its steady course with a hold.
"With the Chancellor drastically revising his growth forecasts this week, many North-East firms will be hoping that the MPC has a cut of at least a quarter of one per cent planned on its list of New Year's resolutions."
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