The Bank of England (BoE) has confirmed that interest rates will remain at 5.25%.

Sue Robinson, Chief Executive of the National Franchised Dealers Association (NFDA), which represents car and commercial retailers across the UK commented:

“The Bank of England (BoE) has kept interest rates at 5.25% for a fourth straight month. With CPI inflation increasing slightly from 3.9% in November 2023 to 4.0% in December 2023, it is important that the necessary precautions are taken to stabilise the economy.

“Last year witnessed high inflation rates, as well as several consecutive rises in interest rates by the BoE. The automotive sector has been robust and overcome these unprecedented challenges, which have also exerted added pressure on consumers, particularly when it comes to purchasing vehicles. In 2024, there remains cautious optimism that inflation will slow and in turn the BoE will begin cutting interest rates.”