Bank of England has 'over-reacted'
The Bank of England's decision to raise interest rates has been criticised by the British Retail Consortium (BRC).

The move will damage consumer confidence further, inflicting pain on British business, and will do little to combat the impact of global energy prices, the BRC said.

'The Monetary Policy Committee has taken a very selective view of the economy. Consumer confidence is negative, consumer borrowing at its lowest level for 12 years, shop prices are barely increasing and higher energy costs are damaging consumers' ability to spend,' said BRC director-general Kevin Hawkins.

'The Bank has over-reacted. It should have waited a few more months before acting,' he added.

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