Latest Debt News
Hopes of interest rate cuts fade
21/10/2005 14:40:00
Analysts have said that a interest rate cut in November is now very unlikely, after higher than expected retail sales.
Figures from the Office of National Statistics (ONS) said that the volume of sales had risen by 0.7 per cent between August and September. The figures followed a poor summer, when purchases rose by only 0.2 per cent in August and had dropped by 0.5 per cent in July.
Despite the short-term rise, other figures still make depressing reading for retailers. Growth in the three months leading to September came to one per cent. ONS claimed that this was the worst annual growth since January 1996.
Howard Archer, UK economist at Global Insight, said: "Retail sales were significantly healthier than expected in September, going a long way to killing off already fading hopes of a November interest rate cut."
Today the ONS also reported figures that showed that GDP (gross domestic product) growth had slowed, from 0.5 per cent in August to 0.4 per cent in September.
The service industries saw growth of 0.6 per cent, despite slight growth in manufacturing, overall production industry output declined by 0.6.
© Adfero Ltd