NFDA welcomes interest rate freeze

The National Franchised Dealers Association (NFDA) has welcomed the news that the Bank of England is keeping interest rates at 5.25%.

There was some suggestion that rates will be reduced, although experts do not expect that to happen now until the summer.

However, the NFDA has said that keeping rates static is good news for automotive retailers.

Sue Robinson, chief executive, said: “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.”