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Interest rate hold is the right choice, says NFDA

The National Franchised Dealers Association has welcomed the Bank of England’s decision to hold interest rates at their current level of 5.25%.

The Bank of England announced earlier today that it would hold interest rates. The last increase was in January.

“Interest rates have been put up three times since August 2006, and we have yet to see the result of these increases on the economy. Keeping interest rates at 5.25% was the right choice.

"Consumers face rising household costs following previous interest rate rises, above-inflation rises in household costs, including council tax bills, as well as the need to pay off debt. All of these costs are impacting on consumer spending, which has a knock-on effect on business.

“Letting interest rates stay at the current level will relieve pressure on consumers, and allow the impact of previous rises to take effect,” said Sue Robinson, director of the RMI NFDA, part of the Retail Motor Industry Federation (RMIF).

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