Fleet News

Interest rates trimmed to 5.5%

The Bank of England has cut UK interest rates to 5.5% from 5.75%.

Interest rates have risen five times since the middle of last year, but the Bank had kept rates on hold since July.

Sue Robinson, director of the RMI National Franchised Dealers Association (NFDA), part of the Retail Motor Industry Federation (RMIF) believes that consumer confidence could be slightly buoyed by the cut: "The softening of the housing market has led to consumers reigning in their spending, and what is left is short-term and focused on Christmas.

"The high-street slowdown hasn’t yet reached the showroom, but with disposable incomes constricting, it is only a matter of time before new car sales are caught up in the general slowdown.

"The cut could help the consumer market remain fluid. Interest rates needed to come down to help consumer confidence."

Leave a comment for your chance to win £20 of John Lewis vouchers.

Every issue of Fleet News the editor picks his favourite comment from the past two weeks – get involved for your chance to appear in print and win!

Login to comment


No comments have been made yet.

Compare costs of your company cars

Looking to acquire new vehicles? Check how much they'll cost to run with our Car Running Cost calculator.

What is your BIK car tax liability?

The Fleet News car tax calculator lets you work out tax costs for both employer and employee