“The decision will not be good for consumer confidence, and could have a negative impact on business,” said Sue Robinson, director of the NFDA, part of the Retail Motor Industry Federation (RMIF).
The Bank of England announced earlier today that it would increase interest rates by 0.25%, raising the rate to 5.5%, the highest it has been in six years. The last increase was in January.
Robinson continues: “Interest rates have been put up four times since August 2006, and we have yet to see the result of these increases on the economy.
“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.
"We urge the Bank of England to allow a period of reflection, to measure the impact of these rises on the economy."