8 June 2005
Low consumer spending could lead to a cut in interest rates later this year, which would be good news for those looking to get a loan.
Lower interest rates would make taking out a loan easier and cheaper.
According to Ross Walker at the Royal Bank of Scotland, the current downturn in the high street was endangering the economy, and one of the main courses of action to buck this trend would be to lower interest rates.
Mr Walker told the BBC: "The outlook over the next few months is that interest rates will remain on hold, but as we get further into the year the risks are that we will get an interest rate cut and certainly that is more likely if consumer spending slows further."
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