Motor industry welcomes rate cut
Date: 11/02/2008 10:39:11
Last week's interest rate cut by the Bank of England's monetary policy committee may help to enhance the confidence of those planning to buy vehicles, it has been claimed.
According to the Retail Motor Industry's National Franchised Dealers Association (NFDA), the decision to reduce the rate to 5.25 per cent could spell good news for the auto industry.
"Retailers, including car dealers have felt the crunch during the last few months and although last year's car sales figures were up, the outlook remains uncertain unless interest rates come down, and stay down," stated Sue Robinson, director of the NFDA.
Rising costs have recently impacted on consumer spending, which has in turn affected businesses, she stated, adding that the rate cut is likely to boost consumer confidence and have a positive effect on the economy overall.
However, calls have been made for the rate to be lowered even further after the British Chambers of Commerce predicted that economic growth could slow to 1.7 per cent during 2008, the BBC reports.