Retails sales growth puts pressure on rates

The chance of an interest rate rise next week has increased even further with the latest retails sales figures showing that we are spending at the fastest rate in over three years. For the month of September retail sales were up 0.8 per cent, driving the annual growth rate to a very strong 8.2 per cent. Balance of trade figures released yesterday show a 1 per cent increase for imports of consumption goods which include electronics and furniture. With little sign of any slowdown after the August interest rate rise the Reserve is almost certain to raise rates next week and it is becoming likely that another rise will follow soon after.