High Streets Hit Hard In July
AUGUST 9TH, 2005
| Credit Cards (introductory rate & period) |
Typical APR | Options |
| Virgin Credit Card 0% balance transfers, 13 months ( 2.9% balance transfer fee ) 0% purchases, 3 months |
15.9% (variable) |
 |
| Post Office Credit Card 0% balance transfers, 8 months ( 2.5% balance transfer fee ) 0% purchases, 3 months |
14.9% (variable) |
|
| Personal Loans | Typical APR | Options |
| Moneyback Bank Personal Loan | 5.7% | |
| Northern Rock Personal Loan | 5.8% | |
July saw the high streets have their worst monthly decline for a decade. Many blame the interest rate increases by the Monetary Policy Committee (MPC), terrorist attacks on London and the cool, wet weather.
Consumers are also becoming more aware of their mounting debt and therefore becoming reluctant to commit to large purchases.
Although interest rates were cut last week to 4.5% by the MPC, it will take several months until there is an effect on consumer spending.
Many predict that the MPC will make a further cut in interest rates between now and Christmas having already seen a slowdown in the housing market.
The MPC will have noted the slow down on the high street and in manufacturing. They will be looking to keep things balanced at the same time as improving consumer spending to a controlled level.
