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Interest rates hold at 5.75%

The Bank of England has kept interest rates on hold at 5.75%.

It’s good news for dealers who have had to cope with five rate rises in the past year.

The Monetary Policy Committee was expected to keep rates on hold this month, as it waits to see the impact of the rises so far.

Economists predict that rates will go up to 6% later this year.

"The Bank of England has made the right choice in holding the interest rate at its present level," said Sue Robinson, director of the RMI National Franchised Dealers Association (NFDA), a part of the RMIF. "Car sales have fluctuated this year. More stable economic conditions could encourage consumer confidence. Consumers face rising 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," added Robinson.

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