“It is positive that the Bank of England has decided to cut the interest rate for the first time since March 2009 to a record low of 0.25%”, said Sue Robinson, Director of the National Franchised Dealers Association which represents franchised car and commercial vehicle retailers across the UK.
Following slowdowns in the services sector, factory activity and the construction industry, this cut from 0.5% is a welcome boost to the UK economy and to offset post Brexit uncertainty.
Robinson continued, “Low interest rates represent an incentive for consumers who want to commit to larger purchases -including cars, and we believe this decision will continue to support the car market, in particular, after the vote turmoil.
“We also urge finance houses and banks to pass the cut on to consumers as a stimulus to spending.”
NOTES TO EDITORS:
The Retail Motor Industry represents the interests of operators in England, Wales, Northern Ireland and the Isle of Man providing sales and services to motorists and businesses. The RMI has a formal association with the independent Scottish Motor Trade Association which represents the retail motor industry in Scotland.