BRITISH retail spending grew at its most robust rate for 2 1/2 years in June, putting lingering hopes the authorities will trim official interest rates next week firmly on ice.

Retail sales leaped by 1.3 per cent during the month, the most buoyant increase since January 1994, the Office for National Statistics (ONS) said. The rise versus the same month last year was 3.3 per cent, also the biggest for 19 months.

Following a buoyant manufacturing survey and confirmation the Bank of England had opposed the June 6th rate cut, Mr Kenneth Clarke's scope to ease monetary policy was severely limited, analysts said.