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Following slowdowns in the services sector, factory activity and the construction industry, this cut from 0.5% is a welcome boost to the UK economy and to offset post Brexit uncertainty.
Low interest rates represent an incentive for consumers who want to commit to larger purchases -including cars, and we believe this decision will continue to support the car market, in particular, after the vote turmoil.
We also urge finance houses and banks to pass the cut on to consumers as a stimulus to spending.