A new report out this week shows the base rate drop has sent us running to the shops.
Despite rumours of falling house prices, predictions of a national credit crunch and poor retail forecasts, it seems that UK shoppers are still getting into the festive spending spirit.
Link, the company that are responsible for the vast majority of cash machines used in the UK have announced that over £3.2bn in cash has been withdrawn from ATMs so far this month. That's £140m more than for the same period last year suggesting that we're taking more cash out of our current accounts and pouring more into retailer's tills.
As withdrawals have been especially high since the 7th December this research suggests that last weeks rate cut has given consumers, and mortgage holders in particular, the confidence and financial freedom to loosen their belts a little and splash their cash in the run up to Christmas.
For UK retailers this news can only be good as up until now many have been reporting poor sales and introducing pre-Christmas reductions to entice shoppers through the door. However, it will remain to be seen whether we consumers are left suffering from a financial hangover in the new year if the predicted credit crunch does come into play.
