8 July 2005
The Principality Building Society has added it voice to those seeking a slash in the interest rate, with credit card holders among those hoping to benefit from any reduction in rates.
Managing director Tracy Morshead said that there was now widespread pressure from business leaders and also individuals to cut the rate - which was yesterday left on hold by the Monetary Policy Committee.
An 11-month lull in which the rate has remained frozen is being seen as a potential barrier to consumer credit, with lenders reluctant to change offers if the base rate remains untouched.
Ms Morshead argued: "Hopes that interest rates could have come down this week were supported by figures showing the worst year-on-year retail sales decline in 22 years."
She went on to predict that a rate cut would be imminent- meaning good news for those seeking cheaper credit.
"Commentators are now predicting a rate cut in August - a reduction in rates would certainly help revive flagging consumer demand on Wales' high streets and would be welcome by mortgage borrowers and potential house buyers. However, savers will be hit by a reduction in rates," she explained.
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