NFDA comments on interest rates rise

“Today’s anticipated decision by the Bank of England to raise their interest rates from 0.5% to 0.75% is unlikely to have any substantial impact on consumer confidence”, said Sue Robinson, Director of the National Franchised Dealers Association (NFDA) which represents franchised car and commercial vehicle retailers across the UK.

The Bank of England (BoE) has confirmed today the decision to raise interest rates from 0.5% to 0.75%. The monetary policy committee voted unanimously to raise the rates. The Bank has said that ‘any future increases in Bank Rate are likely to be at a gradual pace and to a limited extent’.

Robinson continued, “Interest rates remain exceptionally low and combined with historically low unemployment levels, consumers should not be significantly affected.

“The new car market is entering an interesting period with the introduction of WLTP in September meaning that consumers will be able to find very advantageous deals throughout August.

“Going forward, we are confident that the Government will continue to monitor closely the trends facing the UK economy and adopt any necessary measures to help consumers feel confident enough to make important purchases such as cars.”