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16/07/2007
Interest rate rise will hit NI retailers
A report from the University of Ulster has revealed that the latest Bank of England interest rate will leave Northern Ireland struggling for custom.
Retailers in the province have had one of their poorest June trading periods for more than 50 years, an expert has said.
Donald McFetridge, a lecturer in Business Studies, said that consumers, already struggling with rising mortgage repayments, mounting credit card bills and increasing loan interest would inevitably have to ‘tighten their belts’ following the interest rate rise.
“This means retailers will be experiencing greater difficulties in both the short and long-term over the coming weeks, months and well into the middle of next year.
“Summer is traditionally a difficult time for many retailers as families depart from these shores for foreign holidays and trips, leaving many High Street stores struggling for custom.
“After returning from their summer breaks, parents with children are caught up in the ‘back to school’ rush will all the obvious inherent costs, leaving less money to splash out on luxury or unnecessary items.”
He continued: “I predict for the rest of this year and well into 2008, both retailers and consumers will be dreading another possible interest rate hike if the Bank of England considers that it has not achieved its objective – to reduce inflation; something which is very difficult to do in the short-term at any rate."
(JM/KMcA)
Retailers in the province have had one of their poorest June trading periods for more than 50 years, an expert has said.
Donald McFetridge, a lecturer in Business Studies, said that consumers, already struggling with rising mortgage repayments, mounting credit card bills and increasing loan interest would inevitably have to ‘tighten their belts’ following the interest rate rise.
“This means retailers will be experiencing greater difficulties in both the short and long-term over the coming weeks, months and well into the middle of next year.
“Summer is traditionally a difficult time for many retailers as families depart from these shores for foreign holidays and trips, leaving many High Street stores struggling for custom.
“After returning from their summer breaks, parents with children are caught up in the ‘back to school’ rush will all the obvious inherent costs, leaving less money to splash out on luxury or unnecessary items.”
He continued: “I predict for the rest of this year and well into 2008, both retailers and consumers will be dreading another possible interest rate hike if the Bank of England considers that it has not achieved its objective – to reduce inflation; something which is very difficult to do in the short-term at any rate."
(JM/KMcA)
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