Rate Cut is Welcomed by the Motor Industry

Interest rate cut by the Bank of England's monetary policy committee may encourage those planning to buy vehicles, it has been claimed.

Interest rate cut is welcomed by the motor industry

Interest rate cut by the Bank of England's monetary policy committee may encourage those planning to buy vehicles, it has been claimed. Sue Robinson director of the National Franchised Dealers Association (NFDA) has stated "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," this means the decision to reduce rate to 5.25 could mean a turn for the auto industry and business may pick up.

Due to the current economic climate this cut should be able to encourage customers but this may not be quite enough due to the British Chambers of commerce predicted that economic growth could slow to 1.7 per cent during 2008 following a report from the BBC.