If you’ve already started your Christmas shopping this year, you might have noticed that the seasonal rush hasn’t yet hit your local shopping centre.

That’s because, according to latest figures, retail sales have fallen for the first time in three years.

Total October retail sales fell 0.1% in October whilst like-for-like sales, which remove the effect of new stores, fell by 2.2%.

Last week saw an unprecedented 1.5% cut in the Bank of England base rate of interest, surprising many city analysts and sending shockwaves through the mortgage market.

The reduction from 4.5% or 3% now means that the BoE base rate is now at its lowest level since 1955 and was widely perceived as the bank's attempts to ease the pressure of the looming recession.

But controversy has surrounded the rate cut and the mortgage lenders have come under intense pressure to pass on the full cut to customers.