The Bank of England (BoE) has confirmed that interest rates will be cut to 4.5% today, the lowest level since June 2023.
The announcement was welcomed by dealers. Sue Robinson, chief executive of the National Franchised Dealers Association (NFDA), representing car and commercial retailers across the UK said: “The Bank of England has reduced interest rates further to 4.5%, following cuts in August and November last year. This decision will help to ease some of the pressure on both consumers and dealerships amid ongoing economic uncertainty.”
Philip Nothard, insight director, Cox Automotive, said: Bank of England’s base rate decision of -0.25% to 4.5% is a welcome development for the UK automotive sector, especially following January’s decline in new car registrations and ongoing pressure on consumer spending.
“With inflation expectations stabilising, the automotive industry will hope the move boosts confidence among buyers and provides relief from high borrowing costs, which have weighed heavily on both private and fleet demand.
“However, with employment stagnating and firms still planning price increases, market conditions remain challenging, and sustained economic stability will be key to supporting long-term automotive recovery.”
