The Bank of England has left the UK interest rate unchanged at 5 per cent amid consumer fears about rising food and fuel prices.

The British Retail Consortium said the move was a wise option. BRC director-general Stephen Robertson said: “Struggling customers and retailers certainly need a boost but, with rising oil and commodity prices stoking inflation to well above the 2 per cent target, leaving rates unchanged was the wise option.

“Though inflation is being driven by global price rises that will not be affected by keeping UK interest rates high, the bank could not risk further fuelling inflation by stimulating domestic demand at this stage.

“But the bank must not close the door on more reviving rate cuts as soon as conditions allow.”

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